A couple in Ontario recently purchased their first home without accepting financial assistance from family, illustrating a growing trend among first-time buyers seeking independence in a challenging housing market. Julia, 29, and her 27-year-old husband closed on a three-bedroom, three-bathroom freehold townhouse in Pickering for $770,000 in March after a multi-year saving effort.

The couple, with a combined annual income of around $160,000, accumulated their $52,000 down payment through a mix of registered accounts and cash savings. Julia maximized employer matches on her Registered Retirement Savings Plan (RRSP), contributed to a Tax-Free Savings Account (TFSA), and occasionally added funds to a First Home Savings Account (FHSA). Their down payment, equivalent to just under 7 percent of the home price, was split evenly between them. They also liquidated most of their TFSA investments and tapped into their RRSP and FHSA balances as needed.

Before securing their home, Julia and her husband rented in North York and had considered purchasing a condominium in Toronto. However, they faced difficulty securing favorable mortgage financing in 2023, including offers with high interest rates from private lenders. They chose to postpone buying and continued saving.

When ready to purchase, the couple worked with Zown, a real estate brokerage and startup operating in Ontario, Alberta, and British Columbia. Zown employs salaried agents and provides buyers a partial rebate of the typical sales commission, which the couple used to help offset closing costs. For their $770,000 purchase, they received a rebate of about 1.25 percent, or nearly $9,625, which nearly covered their estimated $10,000 in closing fees—including $7,500 in land transfer tax and $1,500 in legal fees.

Their home search took nearly five months and involved placing offers on five properties. They faced frequent bidding wars, at times encountering counteroffers as much as $70,000 above the asking price. Julia noted the emotional challenge of locking onto a prospective home and then being outbid.

Despite a monthly mortgage payment of approximately $3,300—about $600 higher than their previous rent—and additional costs for insurance and utilities, the couple said they felt positive about their purchase. They appreciated the increased living space, proximity to both families, and improved transit access to Toronto.

The couple advised prospective first-time buyers to be patient and to view many homes before making a decision. Julia emphasized the importance of not rushing into the first property that captures interest.

While the couple has not yet faced major repair expenses, they anticipate some future costs for an attic mold issue. In the meantime, they are investing in furnishing their larger home, aided by the commission rebate.

Julia summed up their perspective on homeownership: “At least you know at the end of this, you own the home that you’re living in.”