A new report is putting a number on just how expensive home ownership is in the first year in Canada.
The recent study by Point2 analyzed the cost of the first year of homeownership in the country’s 50 most populous cities, and as you might expect, the cost varies widely.
Point2 analyzed data on upfront costs, such as closing and down payments, and annual recurring costs, including mortgage payments, property taxes, and homeowners’ insurance.
Most expensive & least expensive
The analysis found that the first year of homeownership costs ranged from $74,342 in Saguenay, Que., to more than $400,000 in Richmond Hill, Ont.
Cities in Quebec generally had lower upfront costs and annual mortgage payments compared to other cities, making homeownership more affordable for first-time buyers.
For example, Saguenay, Trois-Rivieres, and Quebec City had down payments of less than $59,000 and annual mortgage payments of less than $18,000.
Canadian cities with the cheapest first year of homeownership, source: Point2Homes
By contrast, owning a home in Ontario cities like Richmond Hill, Markham or Oakville, required down payments of $265,000 or more and annual mortgage payments of more than $80,000.
Canadian cities with the most expensive first year of homeownership, source: Point2Homes
Unsurprisingly, the report also found that the cost of homeownership in Vancouver and Toronto was particularly high, with the first year of ownership averaging more than $315,000 in these cities.
However, the report noted that financial aid programs and other measures (like the two-year moratorium on non-Canadians purchasing residential property) to make it easier for Canadians to buy homes might help increase homeownership rates.
Read Point2’s full report here.
I found this article misleading and confusing. Downpayment and closing cost are one time expenses, all others are on going expenses. Adding it together doesn’t make any sense, Also, you number only works when everyone bought their house Dec 31 the year before. For average people, it took years for them to prepare for the initial downpayment. And the only other thing important to them is their income will have no problem covering the on going cost.