While housing prices continue to fluctuate in Canada, a recent study has shown that 37% of Canadian Gen Z adults still expect to purchase their first home within the next five years. This is a great sign as it shows that many young people are still working toward owning a home despite obvious roadblocks like rising rates and inflation. The other 63%, however, see purchasing a home as a more long-term goal. To balance the scales, here are some key strategies and resources that will make getting a mortgage and eventually owning a home a lot easier for you:

Shop around for a mortgage

Like anything else, it’s hard to know if you’re getting the best deal unless you shop around to see what options are out there. When purchasing a new flatscreen TV or car, more often than not you’re visiting multiple stores and dealerships to find the best deal. Although the same rules should apply to a mortgage, Homewise conducted a recent survey and found that 50% of adults ages 25-44 do not shop around for mortgage offerings. There are multiple lenders to choose from and if you limit yourself to your family's bank, you may not be getting the best option for your situation – making a mortgage seem more difficult than it is. Luckily, Homewise has a dedicated team of Mortgage Advisors who negotiate with over 30 lenders on your behalf. You are guaranteed the best deal.

Take advantage of helpful incentives

In Canada, there are several incentives available for first-time home buyers that can make getting a mortgage a lot easier. Look into them and take advantage of what is available to you for the best chance of securing your dream home:

  • The First-Time Home Buyer Incentive helps people across the country purchase their first home. This program offers up to 10% of the home’s purchase price to put toward a down payment. It is a key incentive that can lower your mortgage carrying costs and give you a better shot at affording a new home. Note: The incentive must be repaid to the Canadian Mortgage and Housing Corporation within 25 years or once the property is sold – whichever happens first.
  • The Home Buyers’ Plan (HBP) is an opportunity to borrow up to $35,000 tax-free from a Registered Retirement Savings Plan (RRSP) to buy or build a home. You can also qualify for an additional $35,000 from your spouse. Note: The amount withdrawn must be re-contributed back into your RRSP within 15 years.
  • Land-Transfer Tax Rebate available to help first-time buyers offset some of the additional costs when buying a home. This refund is incredibly useful as it can be allocated toward other expenses or added into your savings. Note: Depending on the province or city you’re buying in, the amount you qualify for will differ.

Start with small goals and work your way up

The truth is that you don't always need a large percentage of a down payment in order to afford a home. While there are benefits to having a down payment of 20% or higher, it is not mandatory. In Canada, buyers are required to have a minimum down payment of 5%. So, start with a small goal of a 5% down payment and save to achieve it. Get organized by reviewing your credit score and lowering your debt before you start your mortgage application. Start to understand your monthly budget and if any costs can be adjusted. Finally, begin to explore your options with Homewise so our mortgage advisors can help you secure a lender that suits your situation.

Everybody is dealing with a different set of financial circumstances and that’s why there are options available to Canadians that make getting a mortgage easier. Although it’s intimidating to get started, arming yourself with the knowledge and resources to kickstart the homebuying process will only make it more doable in the long run. Apply online with Homewise in just five minutes and we’ll be happy to walk you through the process from start to finish.