It took three years for Ross Davison and his wife to purchase their first home.

The Ottawa couple began looking before the pandemic but were repeatedly sidelined by rapidly rising house prices, climbing interest rates and tougher mortgage rules.

B次元官网网址淚t felt like a constantly changing game,B次元官网网址� Davison said. B次元官网网址淭hings were always jumping just out of reach.B次元官网网址�

With a baby on the way last spring, the couple ended up scaling back their wish list and put a bid in on a suburban townhouse.

B次元官网网址淚ronically, we saw these units when we first started looking but we didnB次元官网网址檛 want to share a wall,B次元官网网址� he said. B次元官网网址淲e ended up buying one three years later for double the price.B次元官网网址�

First-time homebuyers in Canada are facing the toughest real estate market in generations.

Skyrocketing home prices and massive interest rate spikes have driven affordability to its worst level in decades, according to a TD Economics report, leaving some first-time buyers shut out of the market altogether.

First-time homebuyers have traditionally accounted for more than half of all purchases. But that share has been declining since the pandemic began, reaching a low of 46.8 per cent in June 2021 as real estate investors and multiple-property owners picked up the difference, TD said.

Although house prices are beginning to edge down, overall affordability hasnB次元官网网址檛 improved.

B次元官网网址淭he drop in prices has not offset the effect of higher interest rates,B次元官网网址� said RBC economist Robert Hogue. B次元官网网址淥ur affordability measure is still deteriorating.B次元官网网址�

Real estate experts say thereB次元官网网址檚 a steeper-than-usual learning curve ahead for many first-time homebuyers. Still, they say there are tips and tricks that can help.

B次元官网网址淭he home ownership dream is not dead,B次元官网网址� Hogue said. B次元官网网址淚 think it can still be achieved by showing flexibility on when to achieve it and what form itB次元官网网址檚 going to take.B次元官网网址�

The first call all prospective first buyers should make is to a real estate agent, said Despina Zanganas, a Toronto Realtor with PSR Brokerage.

B次元官网网址淧eople often wait too long to try and find a Realtor,B次元官网网址� she said. B次元官网网址淚 suggest reaching out to Realtors a year before you plan to buy.B次元官网网址�

Buyers often rely on word of mouth to find a real estate agent, but Zanganas said itB次元官网网址檚 important to shop around.

B次元官网网址淚tB次元官网网址檚 important to find someone you connect with and is right for you,B次元官网网址� she said.

The next step is to figure out what you can afford, Zanganas said.

B次元官网网址淚B次元官网网址檝e had first-time homebuyers that say they want to buy a house in (affluent Toronto neighbourhood) Rosedale and they have a $900,000 budget,B次元官网网址� she said. B次元官网网址淎 mortgage agent will help set your expectations properly.B次元官网网址�

B次元官网网址淭heyB次元官网网址檒l also flag all the additional closing costs,B次元官网网址� she added. B次元官网网址淥ften first-time buyers donB次元官网网址檛 think about the extras.B次元官网网址�

Meanwhile, the federal government has launched several programs aimed at helping first-time buyers.

The recently announced Tax-Free First Home Savings Account gives new buyers the ability to save $40,000 on a tax-free basis towards the purchase of a first home in Canada.

B次元官网网址淚tB次元官网网址檚 a powerful way to come up with a down payment for a first home,B次元官网网址� said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.

ItB次元官网网址檚 an improvement from the Home BuyersB次元官网网址� Plan, which allows Canadians to withdraw up to $35,000 from a Registered Retirement Savings Plan to come up with money for a down payment but must be repaid within 15 years, he said.

Still, the new registered plan is slated to startnext year, so Laird said it will be a few years before it helps buyers.

Another new program called the First-Time Homebuyer Incentive offers up to 10 per cent towards a new home purchase through a shared-equity mortgage with the government.

But Laird warns new buyers to steer clear of the program, noting that co-owning a home with the government is an B次元官网网址渙ddB次元官网网址� scenario that could backfire.

B次元官网网址淲e think itB次元官网网址檚 quite detrimental,B次元官网网址� he said. B次元官网网址淭he government becomes a co-owner B次元官网网址� they donB次元官网网址檛 pay the maintenance costs or property taxes, but they share in the potential appreciation. We find it flawed from many angles.B次元官网网址�

Mortgage loan insurance from the Canada Mortgage and Housing Corporation allows buyers to pay a smaller down payment in exchange for a fee of up to four per cent.

B次元官网网址淭he fee is clear and upfront and thereB次元官网网址檚 no muddying of who owns what,B次元官网网址� Laird said.

However, mortgage loan insurance is available only for properties with a purchase price below $1,000,000. Laird said the maximum should be higher in cities like Toronto and Vancouver.

B次元官网网址淭he government has no interest in helping affluent people buy multimillion dollar homes,B次元官网网址� Laird said. B次元官网网址淏ut if you buy a $1.2 million semi in Toronto with no parking, youB次元官网网址檙e not some rich country club guy. YouB次元官网网址檙e trying to find a home for your family.B次元官网网址�

Meanwhile, even once homeownership is finally in reach, first-time buyers should expect to feel B次元官网网址渁bsolutely sick to their stomach,B次元官网网址� he said.

B次元官网网址淭he normal first-time homebuying experience is an emotional roller coaster.B次元官网网址�

Real estate agent Zanganas agrees, noting that first-time homebuyers are B次元官网网址渞eally afraid of losing their shirts and making the wrong decision.B次元官网网址�

B次元官网网址淚 always warn them that once they sign on the dotted line, theyB次元官网网址檙e going to worry it was the worst mistake of their life. Everybody goes through that.B次元官网网址�

After welcoming a baby girl and settling into their new townhouse, Ross Davison and his wife, Katherine MacDonald, are breathing a sigh of relief.

B次元官网网址淧art of the magic of having to be rigorous in our search is that we really got to know all the little neighbourhoods in Ottawa really well,B次元官网网址� MacDonald said.

B次元官网网址淲e opened ourselves up to things we never would have considered before and we landed somewhere we are really happy.B次元官网网址�

Brett Bundale, The Canadian Press

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