New analysis is shining some light on the “daunting” costs many Ontario homebuyers face in their first year of ownership, particularly in the Toronto area.
Point2 Homes released new data on Thursday looking at upfront costs and annual recurring expenses, including closing costs, the down payment, mortgage, property tax and homeowners’ insurance.
“Becoming a homeowner is demanding as it is, but the first year of homeownership is a beast of its own,” the real estate organization said in a statement.
“For fresh buyers, the array of upfront and annual recurring costs is not just challenging, but also daunting.”
Point2’s analysis found that the cost of first-year home ownership averaged more than $315,000 in five Ontario cities.
In Richmond Hill, that figure was the highest at more than $400,700.
In Markham, it was $383,469, Oakville $378,122, Vaughan $369,051 and Toronto $315,031.
Point2 said Richmond Hill stands out with the highest 20 per cent down payment at $281,700, followed by Markham at $270,300 and Oakville at $265,400.
Point2 noted, however, that it may be more financially manageable in Kingston, St. Catharines, London and Windsor, with first-year costs below $170,000.
- Smoke spreads to large swath of Ontario as forest fires rage in Quebec
- 3 people charged after Uber driver pistol whipped, carjacked in Whitby: police
- Ford calls for head of correctional service to be fired over Paul Bernardo transfer
- Ontario seeing more forest fires amid unprecedented season across Canada
And in the Greater Sudbury area, the figure is even lower at $119,472.
“It’s not easy becoming a homeowner in Ontario cities,” Point2 said.
“Saving up for upfront costs can take up to 20 years in Richmond Hill, Markham, Oakville, Vaughan, and three years less in Toronto and Burlington.”
And saving to cover the full costs of home ownership in the first year can take more than 25 years in Richmond Hill, Vaughan, Markham and Oakville.
More information on Point2’s analysis and methodology, including where it’s cheapest for the first year of home ownership in Canada, can be found on the organization’s website.