As average home prices begin to stabilize in Canada, a new report is showing where Canadians are paying some of the lowest homeownership costs.
As part of its study, Point2 Homes calculated the first-year cost of owning a home in 50 Canadian cities based on MLS benchmark home prices from January. This includes upfront costs, such as a 20-per-cent down payment and closing fees, along with annual recurring costs, such as property taxes and mortgage payments. Calculations were made using a five-year, fixed-rate mortgage with an interest rate of 5.86 per cent.
The three Canadian cities with the most affordable first year of homeownership are all found in Quebec, according to the report. In the city of Saguenay, for example, new homeowners will accumulate $74,342 in home payments during the first year. This is based on a benchmark home price of $254,500.
However, cities in Ontario and British Columbia reported much higher costs associated with the first year of homeownership. Throughout the first 365 days of owning a home in Richmond Hill, Ont., for example, new buyers will pay about $400,733. In other cities, such as Vancouver and Toronto, the first-year cost of owning a home amounts to more than $315,000.
This is attributed to higher benchmark home prices in these cities, which also lead to higher mortgage and down payments on new purchases. According to Point2 Homes’ report, the benchmark price of a home in Vancouver was $1,167,800 in January. In Toronto, the benchmark price of a home was $1,067,000 in the same month.
“Despite financial aid programs and dwindling competition for already-scarce inventory, the costs of homeownership weigh on any potential buyer,” reads the report’s press release, issued Feb. 27.
According to data released by the Canadian Real Estate Association on Wednesday, the national average price of a home was $662,437 in February, not seasonally adjusted. While this represents a drop of 18.9 per cent compared to this time last year, it is about $50,000 higher than the average price reported last month.
Concerns around home affordability continue to be top of mind for Canadians. A new survey released by Mortgage Professionals Canada shows a record number of Canadians who do not currently own a home think they will never be able to afford one. Additionally, recent census data shows the homeownership rate among Canadians is on the decline.
Following the Bank of Canada’s decision to hold its key interest rate at 4.5 per cent on March 8, the next few months will offer “a clearer picture in terms of how today’s buyers are absorbing the higher interest rate environment,” said Penelope Graham, director of content at Ratehub.ca, in a statement to CTVNews.ca on Wednesday.
Below are major cities with some of the cheapest and most expensive first-year costs of homeownership in Canada. Scroll down for a list of homes that are currently on the market in these municipalities.
SAGUENAY, QUE.
Type: House
Price: $289,500
Year Built: 1958
Property Size: 117.57 sq. m
Lot Size: 774 sq. m
Cost of First Year: $74,342
This bungalow in Saguenay, Que. features six bedrooms and two bathrooms, in addition to an open-concept living, dining and kitchen area. Outside, the backyard is completely fenced and includes an above-ground swimming pool. The home is located near public transportation and is a short drive from the downtown core.
REGINA
Type: House
Price: $299,900
Year Built: 1950
Property Size: 78.22 sq. m
Lot Size: 351.27 sq. m
Cost of First Year: $88,704
At the entrance of this Regina home is a custom front door leading to a combined living and dining area with hardwood floors and a brick fireplace. In the kitchen is slate tile flooring and new stainless steel appliances. The basement has been fully renovated, and includes a bedroom, a three-piece bathroom and a second kitchen with custom countertops and a breakfast bar.
ST. JOHN’S, N.L.
Type: Townhouse
Price: $309,900
Year Built: 1930
Property Size: 145.11 sq. m
Lot Size: 150.50 sq. m
Cost of First Year: $88,956
This semi-detached townhouse in St. John’s, N.L. spans 145 square metres. In addition to four bedrooms and one bathroom is an open-concept living and dining area, which has two fireplaces. The kitchen, which features a walk-in pantry, also offers access to the deck in the backyard. The home is located near several parks and restaurants.
WINNIPEG
Type: House
Price: $334,900
Year Built: 1905
Property Size: 110 sq. m
Lot Size: 324.79 sq. m
Cost of First Year: $95,125
Built in 1905, this Winnipeg home includes a number of upgrades throughout. On the main level, vinyl plank floors run throughout the living and dining rooms as well as the kitchen, which also has modern-style cabinets and quartz countertops. On the upper floor are all three bedrooms and a four-piece bathroom.
EDMONTON
Type: Apartment
Price: $368,900
Year Built: 2019
Property Size: 51.02 sq. m
Lot Size: N/A
Cost of First Year: $100,078
This one-bedroom, one-bathroom unit is situated in Edmonton’s Ice District. It features engineered hardwood floors throughout, and the open-concept living area offers access to a balcony with west-facing views. The apartment building is located near Rogers Place and on-site amenities include a patio, pool and fitness centre.
SASKATOON
Type: House
Price: $384,900
Year Built: 2022
Property Size: 119.94 sq. m
Lot Size: 355.26 sq. m
Cost of First Year: $102,992
Located in Saskatoon’s Caswell Hill neighbourhood, this newly-built home comes with three bedrooms and three bathrooms. On the main level are separate living and dining areas, along with a kitchen complete with granite countertops. On the upper level are all three bedrooms and an en suite bathroom. Near the home are various amenities such as restaurants, elementary schools and parks.
GREATER SUDBURY, ONT.
Type: House
Price: $449,900
Year Built: 1971
Property Size: 124.49 sq. m
Lot Size: 698.63 sq. m
Cost of First Year: $119,472
With three bedrooms and two bathrooms, this house in Greater Sudbury, Ont. features tile and vinyl plank flooring throughout. The recently upgraded kitchen comes with two-tone cabinets and new appliances. On the lower level is a family room with a gas fireplace, along with a laundry room, and the home is within walking distance of Moonlight Beach.
CALGARY
Type: House
Price: $524,900
Year Built: 1929
Property Size: 82.03 sq. m
Lot Size: 418.06 sq. m
Cost of First Year: $142,388
Recent updates to this home in Calgary’s Mount Pleasant neighbourhood include new floors and roofing. In addition to an open-concept living and dining area, this bungalow also has two bedrooms and a bathroom. The kitchen overlooks a south-facing backyard that is fully fenced, and the basement is fully finished. Also on the lot is a heated garage.
HALIFAX
Type: Townhouse
Price: $550,000
Year Built: 1999
Property Size: 173.08 sq. m
Lot Size: 0.2 to 0.4 hectares
Cost of First Year: $143,292
This 173-square-metre townhouse in Halifax has three bedrooms and three bathrooms. On the main floor are the combined living and dining spaces, which feature updated trims. On the upper floor, the main bedroom has an ensuite complete with a Jacuzzi. The home also has a single-car garage with cabinets for storage, and is situated near schools and public transportation.
MONTREAL
Type: Apartment
Price: $599,000
Year Built: 1890
Property Size: 100.15 sq. m
Lot Size: N/A
Cost of First Year: $150,738
Situated in Old Montreal, this loft spans more than 100 square metres and includes one bathroom and one bedroom. With three-metre-high ceilings, the apartment also features exposed brick walls and floor-to-ceiling windows. Amenities include a common terrace on the rooftop.
ABBOTSFORD, B.C.
Type: Townhouse
Price: $684,900
Year Built: 2018
Property Size: 110.10 sq. m
Lot Size: N/A
Cost of First Year: $210,534
This end-unit townhouse in Abbotsford, B.C. has an open-concept floorplan on the main level, which includes a gourmet kitchen complete with stainless steel appliances and quartz countertops. In addition to two bedrooms on the upper floor is a den in the basement, which can serve as a home office or an extra bedroom.
VANCOUVER
Type: Apartment
Price: $1,169,000
Year Built: 1989
Property Size: 107.77 sq. m
Lot Size: N/A
Cost of First Year: $331,638
Recently renovated, this Vancouver apartment unit features several upgrades including the addition of engineered oak flooring in the combined living and dining areas, as well as both bedrooms. The unit’s two bathrooms also include new Italian tiling and heated floors. In the kitchen are updated quartz countertops, new stainless steel appliances and a wet bar, while floor-to-ceiling windows let in plenty of natural light.
RICHMOND HILL, ONT.
Type: House
Price: $1,360,000
Year Built: 1942
Property Size: 204.39 sq. m
Lot Size: 715.44 sq. m
Cost of First Year: $400,733
Originally built in 1942, this two-storey home in Richmond Hill, Ont. has been fully renovated in recent years. This includes upgrades to the kitchen, as well as a remodeled dining and living area. The home also has three bedrooms, two bathrooms and a solarium. In the finished basement are two more bedrooms, as well as another kitchen. The basement also has its own entrance to the home.
