Most Canadians spend their early adulthood saving and planning for their first home purchase. However, the exact ins and outs of this journey look different for everyone.
In this blog, we’ll touch on the average of first-time home buyers in Canada, why that number is going up, and how you can strategically plan your first real estate purchase around your unique needs!
It’s True: First-Time Buyers Are Getting Older
With company roots stretching back more than 100 years, our multi-generational team has seen a lot of change in real estate. One of the most talked-about trends of the past decade is the fact that first-time home buyers are getting older. This concept isn’t just speculation; it’s true.
Canada-wide, the average age of a first-time home buyer is about 36. In Ontario, that number jumps up to 40. Considering that the average age of a first-time home buyer in Ontario was just 34 a decade ago, this is quite the steep increase.
Several factors have contributed to this. On the real estate side of things, rising house prices, increased lending costs, and property taxes have made the price tag of homeownership more significant. On top of that, certain economic and cultural variables like inflation, job market changes, student loans, and elevated costs of living (including rent) are making it harder for young Canadians to save up for a house in early adulthood.
Become an informed home buyer by checking out these related blogs next:
- Will I Ever Be Able to Afford a Home?
- How Much Do You Need to Make a Deposit & Down Payment?
- How Long Should You Plan Ahead Before Buying a Home?
Is There a Right Age to Buy a House?
Buying a house isn’t just a financial decision. It’s also about lifestyle. Today, it’s completely normal for first-time home buyers to be in their late 30s, 40s, or even 50s. But, is there such a thing as a “best age” to buy? In simple terms, no.
There’s no “best age” to buy a house. At least not in a universal sense. Instead, it’s better to approach this question with your own needs in mind.
Everyone is different. Rather than think about what other people or previous generations have done, focus on finding the right time to buy for you. This could align with a specific age, or a major life event like getting married, starting a family, or a promotion at work.
Do You Have to Buy a House?
It’s also worth mentioning that you don’t need to buy a house. Sure, there are a lot of perks to homeownership, both in terms of personal and financial stability; however, there’s no law that says you have to buy a house (even if you have the financial means). If you’re comfortable with renting for the foreseeable future, you can keep on renting.
If you’re not sure about buying, talk to a professional expert. A real estate agent or financial advisor can help you understand the complete pros and cons of buying and how they relate to your individual situation.
Searching for more insights on buying a house? Explore these blog posts for more advice.
- What is the Mortgage Stress Test & What Does it Mean for Me?
- Why Do You Need a Real Estate Agent?
- How Seasonal is Real Estate?
Getting Ready to Buy Your First Home
No matter your age, a successful first home purchase starts with proper planning. Here are a few tips to help you get ready for your buying journey.
Understanding Your Budget
First things first, you need to know what you can afford. This means building out a strong budget that accounts for the complete costs of buying a house, plus long-term expenses like insurance, utilities, and property taxes. An easy way to do this is by applying for a mortgage pre-approval.
If you’re still saving up to buy, don’t forget to take advantage of Canada’s dedicated First Home Savings Account, which allows you to set some money aside tax-free.
Picture Your Ideal Home
Your first home may not be your dream home, but it should still meet your needs. So, before you head to the market, take time to outline everything that you want and need from a house. You’ll also want to make note of which neighbourhoods and communities you like best. These insights will help your real estate agent make informed recommendations.
Don’t Rush Into It
Buying a house (especially your first) can be exciting. But it’s important not to get swept up in the emotions of it all. After all, you’re making a big investment. Remember to buy with your head as much as your heart, and trust your Realtor’s advice about how to navigate the buying process.
House Hunting? Get in Touch With Us!
When you’re ready to buy your first home, our team is here to help. Bosley Real Estate has been helping Canadians find and buy their first home for more than a century. Our advanced buying systems, client-first approach to service, and vast industry relationships can help you build a thoughtful home-buying roadmap, leading to a smooth and successful home purchase.
Buying a house? We can help! Send us an email at info@bosleyrealestate.com or call 416-322-8000 to get in touch.
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