Calgary 
There are only seven Canadian cities where the first year of homeownership costs less than $100,000, finds Point2, a real estate listing website.
The study analyzed data from the 50 most populous cities in Canada, focusing on upfront costs and annual recurring costs associated with purchasing a home.
Credit: Point2
Upfront costs were determined by considering closing costs and a 20% down payment based on local benchmark home prices.
The annual recurring costs included mortgage payments (assuming the conventional, five-year, fixed-rate mortgage with a 5.86% interest rate and a 25-year amortization period), average property tax, and homeowners’ insurance.
To provide further context, the study also calculated how long it would take for the average renter to save enough money to cover the upfront costs of transitioning into homeownership.
Cheapest & Costliest Cities
The study found that the first year of homeownership in Ontario and British Columbia cities such as Richmond Hill, Markham, Oakville, Vancouver, and Toronto averaged more than $315,000.
However, the cost of the first year of homeownership was less than $100,000 in only seven of Canada’s most populous cities, including Québec’s Saguenay, Trois-Rivières, Québec City, Lévis, Regina, SK, St. John’s, NL, and Winnipeg, MB.
The high cost of homeownership in cities such as Richmond Hill can be attributed to the high benchmark home price of $1,408,500, which leads to the highest 20% down payment among all 50 cities analyzed at $281,700. In comparison, the benchmark price in Saguenay is $254,500, leading to a down payment of $50,900 and annual mortgage payments of less than $15,500.
The study also found that buying a home in Edmonton or Calgary, AB, as well as Greater Sudbury, ON, requires the lowest closing costs, unlike Toronto and Vancouver. St. John’s, NL, has the most affordable homeowners’ insurance and the second-lowest property taxes.
Number of Years of Savings Required
Point2 says can take between 5 and 22 years of savings to cover the upfront costs and become a homeowner in Canada’s most populous cities. In the 21 cities where saving is easier, it can take up to 10 years to set aside the amount required to cover the upfront costs of purchasing a home.
For new homebuyers, the down payment is the main hurdle, especially for those without outside financial help.
The study applied the 50/30/20 budgeting rule to calculate how many years potential homebuyers would need to save to cover the upfront expenses of buying a home. According to the rule, a renter household would put 20% of their yearly income toward homeownership.
In Edmonton, for instance, need to set aside money for five years to cover the upfront costs of homeownership. The duration varies across other cities, with Ontario cities being the most challenging places to save up. Renters in Richmond Hill, Markham, Oakville, and Vaughan need at least 20 years to save up for upfront costs, while those in Toronto and Burlington need 17 years on average, much like those in Vancouver and Richmond, BC.
Additionally, homeowners must also factor in a year’s worth of monthly mortgage payments, homeowners’ insurance, and property taxes, which can further increase the cost of the first year of homeownership.
For instance, in Edmonton, the first year of homeownership costs more than $100,000, which takes seven years of savings to cover. It takes eight years in Regina, SK, St. John’s, NL, Quebec City, and Saguenay, QC.
Meanwhile, saving up 20% of the average yearly income can cover the $400,000+ cost of the first year of homeownership in Richmond Hill, ON, in 28 years.
Years Required to Save to Buy a House
| City | Benchmark Price | 1st Year of Homeownership Costs | Total Annual Recurring Costs | Average Renter Household Income | Years to Cover Upfront Cost | Years to Cover 1st Year of Home Ownership |
| Richmond Hill, ON | $1,408,500 | $400,733 | $96,086 | $70,381 | 22 | 28 |
| Markham, ON | $1,351,500 | $383,469 | $91,902 | $70,381 | 21 | 27 |
| Vaughan, ON | $1,299,100 | $369,051 | $88,878 | $70,381 | 20 | 26 |
| Oakville, ON | $1,327,000 | $378,122 | $91,417 | $70,381 | 20 | 27 |
| Vancouver, BC | $1,167,800 | $331,638 | $74,863 | $73,769 | 17 | 22 |
| Toronto, ON | $1,067,000 | $315,031 | $72,680 | $70,381 | 17 | 22 |
| Richmond, BC | $1,109,200 | $314,917 | $71,463 | $73,769 | 17 | 21 |
| Burlington, ON | $966,900 | $274,917 | $67,620 | $59,692 | 17 | 23 |
| Whitby, ON | $1,027,700 | $295,730 | $75,343 | $67,841 | 16 | 22 |
| Mississauga, ON | $1,019,100 | $290,038 | $71,491 | $70,381 | 16 | 21 |
| Milton, ON | $1,045,900 | $295,504 | $72,015 | $70,381 | 16 | 21 |
| Coquitlam, BC | $1,042,600 | $296,694 | $67,530 | $73,769 | 16 | 20 |
| Windsor, ON | $558,000 | $162,527 | $45,424 | $40,218 | 15 | 20 |
| Burnaby, BC | $1,028,833 | $292,435 | $66,219 | $73,769 | 15 | 20 |
| Brampton, ON | $1,005,600 | $287,700 | $72,077 | $70,381 | 15 | 20 |
| Ajax, ON | $977,000 | $280,939 | $71,388 | $70,381 | 15 | 20 |
| Surrey, BC | $921,002 | $262,240 | $59,338 | $73,769 | 14 | 18 |
| Saanich, BC | $866,700 | $247,753 | $57,209 | $68,607 | 14 | 18 |
| Langley, BC | $958,400 | $272,972 | $61,992 | $73,769 | 14 | 19 |
| Oshawa, ON | $813,300 | $234,508 | $61,337 | $67,841 | 13 | 17 |
| Hamilton, ON | $754,100 | $215,975 | $56,356 | $59,692 | 13 | 18 |
| Guelph, ON | $800,900 | $228,260 | $59,285 | $63,714 | 13 | 18 |
| Kelowna, BC | $754,085 | $216,563 | $49,903 | $69,682 | 12 | 16 |
| Barrie, ON | $724,400 | $207,802 | $54,257 | $63,714 | 12 | 16 |
| Waterloo, ON | $691,800 | $197,406 | $51,020 | $67,524 | 11 | 15 |
| St. Catharines, ON | $583,000 | $167,247 | $44,846 | $53,447 | 11 | 16 |
| Kitchener, ON | $691,300 | $197,721 | $51,049 | $67,524 | 11 | 15 |
| Cambridge, ON | $731,000 | $209,276 | $54,577 | $67,524 | 11 | 15 |
| Abbotsford, BC | $736,800 | $210,534 | $48,430 | $70,865 | 11 | 15 |
| Ottawa, ON | $603,900 | $171,997 | $44,776 | $60,750 | 10 | 14 |
| Montréal, QC | $525,120 | $150,738 | $37,141 | $59,264 | 10 | 13 |
| London, ON | $547,450 | $157,169 | $42,224 | $56,411 | 10 | 14 |
| Kingston, ON | $538,300 | $153,888 | $41,417 | $58,951 | 10 | 13 |
| Halifax, NS | $490,700 | $143,292 | $36,193 | $56,573 | 9 | 13 |
| Sherbrooke, QC | $337,500 | $100,214 | $25,098 | $45,571 | 8 | 11 |
| Longueuil, QC | $438,000 | $128,625 | $31,932 | $59,264 | 8 | 11 |
| Laval, QC | $463,988 | $132,786 | $33,039 | $59,264 | 8 | 11 |
| Greater Sudbury, ON | $420,700 | $119,472 | $33,444 | $54,929 | 8 | 11 |
| Gatineau, QC | $405,000 | $118,603 | $29,468 | $58,836 | 8 | 10 |
| Calgary, AB | $520,900 | $142,388 | $36,304 | $68,785 | 8 | 10 |
| Winnipeg, MB | $323,600 | $95,125 | $24,517 | $53,890 | 7 | 9 |
| Terrebonne, QC | $411,000 | $118,309 | $29,745 | $59,264 | 7 | 10 |
| Saskatoon, SK | $366,000 | $102,992 | $26,956 | $56,153 | 7 | 9 |
| Trois-Rivières, QC | $270,000 | $79,517 | $20,768 | $45,892 | 6 | 9 |
| St. John’s, NL | $316,300 | $88,956 | $22,581 | $56,475 | 6 | 8 |
| Saguenay, QC | $254,500 | $74,342 | $19,524 | $45,678 | 6 | 8 |
| Regina, SK | $312,200 | $88,704 | $23,580 | $57,301 | 6 | 8 |
| Québec City, QC | $290,601 | $84,370 | $21,522 | $52,203 | 6 | 8 |
| Lévis, QC | $309,000 | $89,246 | $22,497 | $52,203 | 6 | 9 |
| Edmonton, AB | $360,000 | $100,078 | $26,205 | $70,562 | 5 | 7 |
The study used January 2023 MLS Benchmark Composite Prices for the majority of the cities but did not include costs of utilities and municipal services, which one must pay regardless of owning or renting.
