The cheapest first year of homeownership in Canada is in these cities
Cheapest cities list. -Point2Homes
Point2 analyzed data from 50 most populous Canadian cities to determine the major cities where the first year of homeownership was easier on the wallets of new buyers.
Homeownership rates declined to a 20-year low in 2021 in Canada due to ongoing inflation and out-of-reach home prices.
The first year of homeownership can be daunting for first-time homebuyers due to upfront costs such as down payment, closing costs, first mortgage payments, homeowners' insurance, and property taxes.
Upfront costs include closing costs and a 20% down payment based on local benchmark home prices while annual recurring costs consist of mortgage payments, average property tax, and homeowners' insurance.
The cost of the first year of homeownership averaged more than $315,000 in Ontario and British Columbia cities such as Richmond Hill, Markham, Oakville, Vancouver, and Toronto.
By comparison, the cost of the first year of homeownership stayed below $100,000 in only seven of Canada's most populous cities: Saguenay, Trois-Rivières, Québec City, Lévis, Regina, St. John's, and Winnipeg.
Becoming a homeowner starts with covering the upfront costs and proceeds with annual expenses such as property taxes, homeowners' insurance, and mortgage payments.
Low benchmark prices and average closing costs can make Québec an attractive option for first-time homebuyers.
Saving up for homeownership takes five years to cover upfront costs in Edmonton, AB, and more than 20 years in Markham and Richmond Hill, ON.
“Despite good homeowners’ insurance deals or low closing costs & property taxes, it’s hard for other cities to compete with the more reasonable down payments & mortgages that make Québec cities stand out.”
See the full story here: https://www.point2homes.com/news/canada-real-estate/cheapest-first-year-homeownership-canada.html
