Top 20 cities with most years required to save for a home: Mississauga #12, Brampton #15, Oakville #3, Milton #10

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Published February 23, 2023 at 4:50 pm

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If you’re planning to buy a home in Mississauga this year, you should prepare to spend a lot of money–perhaps more than you anticipated–in your first year as a homeowner. 

According to Point2Homes, a real estate company covering market trends and news, Mississauga is one of the most expensive of 50 Canadian cities when it comes to hefty homeownership costs. 

The report says that people who purchase a home in Mississauga can expect to spend $290,038 in the first year of owning their property.

The report says the average 20 per cent downpayment comes in at $203,820. After that, new homeowners can expect to spend $14,727 on closing costs, $1,250 in home insurance and $8,459 in property taxes.

In a city where the average benchmark home price sits at $1,019,100, new homeowners can expect to spend $218,547 in total upfront costs and $61,783 in annual mortgage payments. 

According to a graphic in the report, total annual recurring costs could hit about $71,491–a little over the average renter’s income of $70,381.

The chart says it could take the average renter up to 21 years to save to cover the costs of one year of home homeownership in the city. 

“Never has the dream of becoming a homeowner in Canada felt just like that — a dream. As homeownership rates declined to a 20-year low back in 2021, potential buyers might still be inclined to postpone ownership plans due to ongoing inflation and out-of-reach home prices,” the report reads. 

“The first year of homeownership, in particular, can be daunting, given the down payment, closing costs, first mortgage payments, homeowners’ insurance, and property taxes — all new to first-time homebuyers.” 

But while the numbers might look bleak for a first-time homeowner or someone hoping to jump from renting to buying, the report notes that some cities and towns are easier on the wallet. 

According to the report, first year costs are lowest in Quebec cities such as Saguenay ($74,342), Trois-Rivières ($79,517) and Quebec City ($84,370). More affordable Ontario cities include Greater Sudbury ($119,472), Kingston ($153,888) and London ($157,169). 

Municipalities where you can expect to pay more than you would in Mississauga include Richmond Hill ($400,733), Markham ($383,469), Oakville ($378,122), Toronto ($315,031), Whitby ($295,730) and Milton ($295,504). 

Homebuyers can expect to spend less than $100,000 in first year costs in just 15 Canadian cities. 

“Considering the measures taken to make it easier for Canadian individuals to buy a home —such as the tax-free First Home Savings Account plan or the recently introduced Prohibition on the Purchase of Residential Property by Non-Canadians Act—, there’s hope that ownership rates might start to inch up,” the report reads. 

“But, despite financial aid programs and dwindling competition for already-scarce inventory, the costs of homeownership weigh on any potential buyer.” 

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