Illustration by Diana Bolton
Julia and her husband had access to something many first-time homebuyers dream of: financial help from family.
They said no.
“I don’t know if it’s just like a pride thing,” said 29-year-old Julia. “We just wanted to do it on our own and have our own sense of accomplishment.”
Instead, the couple kept saving for a down payment. In March, they bought a three-bedroom, three-bathroom freehold townhouse in Pickering, Ont., for $770,000.
Julia and her 27-year-old husband put down $52,000 – just under 7 per cent – split evenly between them.
Together, they earn about $160,000 a year and they saved for their home across their Registered Retirement Savings Plan, Tax-Free Savings Account, First Home Savings Account and cash accounts.
Julia said she maximized employer RRSP matching and had money automatically transferred from each paycheque. She also contributed to her FHSA when she could.
Still, buying didn’t feel realistic. “I literally thought we were going to have to move to Leamington, Ont., or something to be able to afford a house,” said Julia, who was renting with her husband in North York before and whose family lives in the west end of Toronto.
In 2023, the couple made their first serious attempt to buy. At the time, they were looking at a one-bedroom-plus-den condo in Toronto, but they struggled to secure attractive financing, she said.
The rates they were being offered weren’t workable, including one offer from a private lender with rates the couple thought were too high. They decided to keep renting and continue saving.
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When they eventually bought a home, they worked with Zown, a real estate startup and brokerage that employs agents on salary and gives its clients back a portion of the sales commission that agents usually take, money that clients often use to help with the down payment or fund closing costs. For now, Zown only operates in Ontario, Alberta and B.C.
For the down payment, the couple liquidated most of their savings. Julia had roughly $12,000 in her RRSP and about $8,000 in her FHSA. She withdrew most of her TFSA money, which had been invested in stocks, and used cash savings to make up the rest of her roughly $26,000 share of the down payment. Her husband followed a similar strategy.
Because Zown rebates part of its commission to buyers, Julia and her husband received 1.25 per cent of the purchase price back – roughly $9,625. However, the cash back in Ontario can be 0.25 per cent lower if buyers use their own mortgage provider.
What Julia and her husband received almost entirely offset their closing costs, which totalled around $10,000. “We didn’t have to use all of our savings,” Julia said.
The rebate came in handy because after moving in, the couple needed furniture for their much larger home, including a new couch, television and dining table.
The home also checked several important boxes. It gave them more space than their rental, kept them close to both sets of parents and offered easy transit access to Toronto, where many of their friends live.
Their search itself wasn’t easy either. They spent almost five months viewing homes in and around the city and placing offers the second time around. Julia estimates they placed offers on at least five properties and were frequently outbid. In one case, a seller countered with a price roughly $70,000 higher.
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The emotional toll of it all surprised her. “You kind of fall in love with a certain home, and then you start visualizing your life there,” she said.
That’s why her advice to other first-time buyers is simple: slow down. “See a lot of homes,” she said. “Don’t get too caught up in the first home that you see.”
Today, the couple pays roughly $3,300 a month toward their mortgage, about $600 more than their old rent, before utilities, insurance and property taxes.
The monthly carrying costs are higher, and Julia says there’s “a little bit more of a squeeze.”
But she doesn’t regret the move. “At least you know at the end of this, you own the home that you’re living in,” she said.
Purchase price: $770,000
Down payment: $52,000 (6.75 per cent)
Legal fees: Approximately $1,500
Moving costs: Less than $50 for a rental truck (family helped move)
Land transfer tax: $7,500
Monthly ongoing costs
Mortgage: $3,300
Home insurance: Approximately $130
Utilities: Approximately $200 – $300/month (still early as they’ve only had one bill)
Repairs: None yet, but mould repair in the attic is still pending (cost TBD)
Advice: “See a lot of homes, and don’t get too caught up in the first home that you see.”
Some details may be changed to protect the privacy of the people profiled. Are you a first-time homeowner who would like to share their story? Send us an e-mail.