Here's How Much You'll Shell Out In Your First Year As A Homeowner In Cities Across Canada
Thinking about buying?
A row of houses in Toronto. Right: A house for sale in Calgary.
Buying a house in Canada is undoubtedly a momentous decision.
And, in addition to having a salary that qualifies for a mortgage, you might want to prepare to splurge your savings as the initial cost of owning a home in Canada isn't for the faint of heart.
A recent study by Point2Homes looked into how much Canadians have to shell out in their first year as a homeowner across some of Canada's biggest cities — and it's pretty painful!
In order to calculate this amount, Point2Homes looked at upfront amounts like closing costs and a 20% down payment based on local benchmark home prices.
It also looked at annual recurring costs, including mortgage payments (assuming a five-year, fixed-rate mortgage with an interest rate of 5.86% and an amortization period of 25 years), property tax and homeowners' insurance.
Exactly how much homeowners pay out in these early years depends on what province they live in, with some Ontario residents shelling out five times more than others in Quebec!
Here's a look at the data.
What are the cheapest cities for homeowners in Canada?
The three cities in Canada with the cheapest first-year home ownership costs are all in Quebec.
The city with the lowest cost for homeowners in the first year is Saguenay, with an initial annual price tag of $74,342.
This is followed by Trois-Rivières ($79,517 in the first year) and Quebec City ($84,370).
Cities in other provinces show up in the fourth and fifth positions, namely Regina, with homeowners shelling out roughly $88,704 in the first year, and St. John's, with locals forking out around $88,956.
Other low-cost cities within the top ten are Lévis ($89,246), Winnipeg ($95,125), Edmonton ($100,078), Sherbrooke ($100,214) and Saskatoon ($102,992).
What are the most expensive cities for homeowners in Canada?
Perhaps it should come as no surprise that, according to the study, many of the most expensive cities for homeowners are concentrated in Ontario and B.C.
It's Richmond Hill in Ontario that's believed to be the most expensive in the first year, with costs amounting to over $400,700.
This was followed by Markham ($383,469), Oakville ($378122) and Vaughan ($369,051), all in Ontario.
In the fifth place was Vancouver ($331,638), followed by Toronto in sixth ($315,031).
The report also looked at how many years it would take to cover the upfront home costs in each city.
According to the research, it would take just five years of saving to cover the average upfront costs in Edmonton. This is followed by Saguenay and Trois-Rivières, both of which would require six years of saving.
Meanwhile, in Richmond Hill, Markham, Oakville and Vaughan, it would take more than 20 years to save for those upfront costs, while homebuyers in Toronto would require 17 years of saving on average, similar to those in Vancouver and Richmond.
Ouch.
If you are thinking of buying a home in Canada though, now may not be a bad time.
According to the Canadian Real Estate Association, per CTV, the national average price of a home was $662,437 in February, down from $816,578 a year ago.
This article's cover image was used for illustrative purposes only.