After more than 20 years of renting, a Vancouver couple has purchased their first home, marking a major milestone motivated by the prospect of stability for their growing family. In May, Amina, 48, and Mike, 49, acquired a four-bedroom, three-bathroom detached house in East Vancouver for slightly over $2 million. They made a down payment exceeding 50 percent, resulting in a mortgage of approximately $1 million.
The decision to buy came after their landlord announced in February that the house they had rented for five years would be sold. With two teenagers, the couple sought to avoid another move and the disruption it would bring. Over the years, they had seen Vancouver's housing market escalate rapidly, causing hesitation and concerns about overpaying or getting caught in bidding wars. Instead, they opted to continue renting, investing their savings and enjoying the flexibility that came with not owning property.
Amina, a lawyer with an annual salary of $230,000, and Mike, an engineer earning $130,000, both work in the public sector and have workplace pensions. Over time, their financial prudence allowed them to accumulate enough for a significant down payment. Their financing strategy included withdrawing nearly $68,000 from combined first home savings accounts (FHSAs) and about $120,000 via the Home Buyers’ Plan from their registered retirement savings plans (RRSPs). They also received family contributions totaling $250,000—most notably, $225,000 from Amina’s mother following a property sale.
While Mike noted they had sufficient investments to cover the down payment without family help, using those funds would have reduced their available savings. Their remaining down payment came from cash reserves and investments, such as guaranteed investment certificates (GICs). Importantly, the couple did not deplete their tax-free savings accounts (TFSAs) or retirement funds in the process.
The newly purchased property, while initially above their target budget of $1.7 million, offered several advantages. Extensively renovated in 2019, it is located close to their son’s high school and includes a ground-floor rental suite with a tenant generating over $1,500 monthly income. The suite also provides future flexibility for family housing. The couple considered more affordable homes in the suburbs, but both work in Vancouver and wanted to avoid longer commutes and additional transportation costs. Their teenagers also preferred to stay within their current neighborhood.
The couple’s mortgage is set at a 3.84 percent fixed rate for three years, with biweekly payments of $2,333 and a 30-year amortization period. Although carrying debt into their later years is not ideal, both anticipate qualifying for full workplace pensions by age 60, providing financial security to manage payments post-retirement.
Having moved four times in the past 12 years, often due to property sales or landlords reclaiming their homes, the family values the permanence homeownership now affords. “You can’t put a number on that,” Amina reflected, emphasizing the emotional and practical benefits of providing stability for their children.
The couple is gradually adapting to the responsibilities and freedoms of homeownership, appreciating small changes they previously could not make in rented accommodations. Their experience highlights the challenges and considerations faced by first-time buyers in a competitive, high-priced market.