Illustration by Diana Bolton
At 24, Stephanie did the unthinkable: she bought a home in Canada’s most expensive city. Not only did she buy it alone, she received no money from family to help with the down payment.
Although the average age of a first-time homebuyer in Canada sits just under 35, high housing costs in Vancouver are causing many buyers to enter the market later in life. According to WOWA, a Canadian financial and real estate report website, average home prices in Vancouver top $1.2-million, above the roughly $1-million average in Toronto and well above the roughly $627,000 cost in Calgary.
Stephanie, now 25, earns $100,000 as a consultant. She purchased her one-bedroom condo last fall for $550,000. But her journey to becoming a young homeowner began when she was a student.
“I always wanted to own my own piece of real estate before I was 25,” she said.
When faced with the choice between an expensive out-of-province degree or attending school in her hometown of Victoria, Stephanie chose the latter, a decision she says was foundational to meeting her savings goals.
“I feel like that was probably my first big financial eye opener,” she said.
By living with her family during her undergraduate years, she avoided rent and student debt entirely. Instead, she was able to set aside roughly $1,000 a month in her later university years from working internships and part-time jobs.
And those early savings didn’t sit idle. Stephanie began investing in a tax-free savings account around the same time and started a first home savings account when it became available. At first, she picked her own investments. But as her workload increased, she shifted some funds into managed accounts.
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The timing worked in her favour, coinciding with the pandemic when stock prices dropped sharply, which allowed her to buy at a discount. “My average return is probably around 60 per cent,” she said.
She focused on companies she understood, including retailers, Canadian banks, energy and tech stocks, and also invested in an S&P 500 index fund.
That investment growth was a pillar of her 20-per-cent down payment. Of the $110,000 she put down, $24,000 came from her FHSA and the rest from her TFSA.
Her second advantage came from continuing to keep her housing costs low.
After graduating, she moved to Vancouver and lived at a family member’s apartment for about a year, paying just $200 a month for utilities. When that arrangement ended, she rented with roommates, paying about $1,250 a month.
“I had no expenses,” she said of her first year, which allowed her to keep saving aggressively.
By her early 20s, she had enough in savings and investments to seriously consider buying, though the decision wasn’t straightforward. She debated whether to liquidate her investments, especially given how well they were performing.
“The one thing I definitely thought about a lot was, ‘Do you keep the stuff in the TFSA, because obviously it’s doing so well, or do you put it in something like real estate, which hasn’t really grown that much in the last five years?’”
Family helped this solo buyer get his first condo, which has dropped $20,000 in value
Ultimately, she decided to buy the condo, partly because of stock market uncertainty and partly because of her personal deadline. “If I don’t do it now, I’m just gonna be waffling about it for so long,” she said.
Stephanie secured a three-year fixed mortgage at 3.99 per cent from a major bank, with payments of about $2,100 a month, along with roughly $400 in monthly condo fees. While higher than her previous rent, it felt worthwhile. “Knowing that you are the landlord… putting money into your own place is definitely rewarding,” she said.
In a year or two, she plans to rent out the unit or leverage it for another purchase. While she’s wondered whether she should have waited for the condo market to bounce back, she says the price of her unit hasn’t dropped significantly since she bought it, which has been reassuring. She acknowledges the risk of selling below her purchase price, but says she took a long-term view. “Timing it perfectly is impossible,” she said.
Still, the process was complicated. Reviewing strata documents proved complex, and navigating the buying process required a steep learning curve. Thankfully, she could lean on her network, including her partner, who works in real estate, and a mortgage broker, for guidance.
Stephanie says she values the independence that comes with being a homeowner. She acknowledges how difficult it is to buy in Vancouver – especially on your own as a young woman. But, she says, “If you can do it by yourself, you should just do it by yourself because you don’t want to rely on a partner.”
CostsPurchase price: $550,000Down payment: $110,000 (20 per cent)Property transfer tax: Stephanie qualified for the FTHB benefit, waiving PTT for properties under $833,000Legal fees: $1,800Moving: $150Monthly ongoing costsMortgage: About $2,100Condo fees: About $400 Utilities: About $50 to $60 every two monthsHome insurance: $1,400 annually ($117 a month)
Stephanie‘s advice: Start as early as you can, even with small amounts, and keep your costs low for as long as possible. The combination matters more than trying to time the market perfectly.
Some details may be changed to protect the privacy of the people profiled. Are you a first-time homeowner who would like to share your story? Send us an e-mail.