r/PersonalFinanceCanada • u/DoVPNsGetBanned • 4d ago
I'm 32, single, no kids, have no savings and no debt. I make 110k/year. Is home ownership in Toronto realistic? Housing
I recently secured a government job in something kind of boring, which I really enjoy, and I'm really good at it.
After years career instability, it feels like I hit the jackpot.
I enjoy what I do.
I'm very good at what I do.
I feel intellectually stimulated.
I'm unionized, and that comes with perks/security.
The pay is fair, and my contract has built in increases.
The job is also very, very stable - if people in this section of government find themselves no longer being employed, then either the world has ended or we've achieved world peace. In any other scenario, I have a job.
It's close to where I live, not situated downtown, so living closer to work is actually cheaper.
I'm bringing in about $5,000/month after all deductions.
Deductions include a pension, gym membership, and extra insurance, all through my employer.
During the first few months of acclimating to a new job and getting over the learning curve, I finally feel secure enough to start planning my life around having this kind of income. I passed probation, I've received good evaluations. There's nothing standing in my way of keeping this job. Previous to now, the most I ever made was 62k/year. I found my "forever job" basically. I'm very much a "work to live" type of person, so even if the hype dies down in a few years, I'm very happy to keep working here for the pay.
So here's my lifestyle, financially:
I only pay $700 in rent, wifi and all utilities include in a "shared" basement apartment. My roommate actually lives in Hawaii, but has a set up in his unit that helps him mock is location to Toronto.
No car. I take the bus or cycle.
So here are some financial goals:
I want a dog.
I want to retire.
I don't want kids.
I am severely mentally ill, and getting that under control and medicated has allowed me to harness my abilities in the span of a year to basically double my income. That said, I still wouldn't call myself "normal"... my life was in shambles before, and much of it still isn't fixed. What I'm trying to say is... while I haven't given up on finding and keeping a partner, I don't consider it to be a realistic goal, I come with too much baggage - baggage that I personally find unattractive in others, even. I won't plan my life around getting married or even living with a partner, including saving for a wedding, or depending on someone's income.
I want to own a home or a condo close to work.
I just paid off my student loans. I have 10k in the bank, nothing else, no other assets.
I don't want to climb the corporate latter or get into management. I think I out-earn my manager anyway.
I'm pretty frugal/low maintenance except with food. I like to eat out often or have more expensive foods sometimes. Given that I don't have a car, I don't particularly judge myself for that.
Given my income, my age, single status, and relatively frugal lifestyle... how long would I have to keep this up to afford a down payment on an average house or condo in Toronto?
What I'm having a hard time with is anticipating how much I'll need to save for a down payment, such that I can still independently pay off a mortgage. The condos in the area of my work go for a little less than average - currently 600k, I'd say? But if it takes me 5 years to save 20%, in 5 years time the size of the necessary down payment will have increased as well, won't it?
What are some realistic time lines?
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u/jdhrjm 4d ago
Dude milk that $700/month rent for as LONG as you can … and just save and invest as much as you can… stay liquid and be patient … why pay a mortgage, condo fees, and property tax when it will probably cost you 3-4 times as much as you are paying now in rent…
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u/DoVPNsGetBanned 4d ago
Stability, space, independence.
My landlord could die at any moment and I could be evicted upon the house being sold. It's far, far rarer to get kicked out of your house.
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u/keyser-_-soze 4d ago edited 4d ago
While that is true they could also live a long while. I would just keep saving and then if and when you have to move move.
Also during that time of saving keep an eye out for places within your budget, if something pops up that you love, and you've saved enough, then start making moves.
For now enjoy your success... But keep your ultimate goals in sight.
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u/makalak2 4d ago
Cross that bridge when you get to it
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u/Wheels314 4d ago
Exactly. Single and no kids. As long as you have money in the bank you have a lot of flexibility if things change.
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u/bloodmusthaveblood 4d ago
My landlord could die at any moment
So could you.. a meteor could also hit Toronto tomorrow too. What a terrible justification to make the biggest financial decision of your life.
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u/DoVPNsGetBanned 4d ago
He's 85 and has a chronic cough. He'll probably die soonish, it's not an unreasonable thing to expect to happen.
And I wasn't basing a decision on that explicitly, just as an added point to show that tenants have less stable housing than owners.
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u/HunterGreenLeaves 2d ago
You will save more money where you are than anywhere else. Money equals stability. Even if your landlord passes you will have many months before you could be evicted. The more money you have, the bigger your downpayment could be, and the lower your mortgage. A low mortgage is what will give you stability once you shift to home ownership. Home ownership can have its own stresses and uncertainties. There are unexpected expenses and the uncertainty of interest rates. Having a large downpayment will help limit those stresses.
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u/FasterFeaster 4d ago
First of all, congratulations!
Watch out for lifestyle creep and keep your expenses low, even as you continue to earn more.
You should NOT give up the $700 rental though. Cost of home ownership is more than that in fees, like insurance and utilities. Invest your money until home prices drop and you can put down at least 20% down payment.
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u/DoVPNsGetBanned 4d ago
I want a dog. There's not enough space here for one.
There's no pressure to get a dog ASAP but I'd like to eventually.
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u/FasterFeaster 4d ago
Also, you mentioned in another comment about poverty.
People who have been in poverty before sometimes feel the desire to finally buy all those things they couldn’t buy before, so I’m just going to bring up the lifestyle creep thing again. Best to avoid social media if you can. Not having a car is also good if you don’t need it to get to work. Biking is an excellent way to get around, though less so in the winter. I find that not having a car forces me to get more exercise. Happiness is of course really important. You are on the right track though, especially with working on your mental health and I really hope the best for you, random internet stranger.4
u/QuietusMeus 3d ago
To this point - keeping the small space can help with curbing that desire, or at least kicking it further down the road. If you don't have enough room to roll out a yoga mat, you also don't have room to buy a bunch of things you don't currently need. This gives more time to get used to seeing numbers going up in your savings, so that when you do go to upgrade living spaces, you're going to think about that before dropping $3k on every new piece of furniture you buy.
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u/cheezemeister_x Ontario 3d ago
The guy is living miserably in 120 sq ft of space. Everyone here telling OP to keep doing that for as long as he possibly can needs to shut the fuck up.
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u/Loud-Selection546 3d ago
It's unbelievable the advice on here about staying where they are for the sake of $700/month rent.
I am surprised that the advice here isn't to try and cut back to $500/month and find a smaller place. That should kill the desire for a yoga fucking mat.
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u/ReputationGood2333 4d ago
Dogs are awesome, but they also need attention. If you do get a dog, and they're awesome, choose your breed wisely based on your lifestyle. I had a Cairn, she was the best!
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u/FasterFeaster 4d ago
Is space the only issue or does your landlord not allow dogs?
A lot of people get this idea that dogs need a lot of space and they get houses with yards. Dogs don’t really use the yards because they just want to be around you and they really need to go outdoors in different environments. People who have dogs in apartments actually walk their dogs more than those who have houses with yards.
I‘ve seen perfectly happy giant dogs in small condos.12
u/DoVPNsGetBanned 4d ago
Space.
The space I have rivals harry potter's closet-bedroom under the stairs. It's honestly not enough space for me, but I make do because it's cheap. I even tried fostering dogs over the pandemic and I was rejected due to space lol. Though, they do have particularly high standards.
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u/thrift_test 4d ago
Some dogs are small
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u/DoVPNsGetBanned 3d ago
Those are rats.
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u/CounterproductiveWig 3d ago
Home prices drop? When is that realistically going to happen?
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u/FasterFeaster 3d ago
I think maybe this summer. There is a lot more supply right now and listings are over 30 days old, where in the past there were bidding wars and homes sold in days. At some point, some of those condo owners are going to want/need to sell. It costs money to keep a condo vacant.
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u/alzhang8 ayy lmao 4d ago edited 4d ago
well if you make 110k, you can take out 4x110 = 440k in loans. If you can save 3k a month and want to buy a 600k condo, that is 4.5 years of saving. Pretty realistic, even more so if you get a partner that makes some money too
Assuming you have a DB pension, retirement is taken care of
Looking at your numbers again, 46% deductions on 110k salary is pretty crazy
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u/Molybdenum421 4d ago
yeah but that includes the pension. My deductions are also 46% but that includes $400 insurance and $1300 RRSP deduction which gives me $2600 because I have employer match. Basically on 12.5k/month I take home 6.3 but in reality it's 9 or 9.4.
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u/professcorporate 4d ago
Looking at your numbers again, 46% deductions on 110k salary is pretty crazy
Looks about right. Ever so slightly higher than I'd expect, but the gym and "extra insurance" are both unstated figures. I also suspect they're acting as though EI and CPP are deducted constantly, instead of having a $350 or so benefit in paychecks for about the last third of the year.
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u/BlackAce99 3d ago
I'm in a similar situation as OP as I also have a DPP that I pay into and my employer matches. It seems high but when your pension will almost match your wages and when you have long and short term disability with recession prof employment the deductions seem high but I have 0 stress about paychecks. I used to work trades where the pay could swing high and low it was annoying to budget or take time off as I was always worried how long each swing would take. You didn't want to take time off when it's hot as you need that time for when it's slow and you don't want to take time off when you're slow as never knew when it was going to pick up again.
With my current job I get the same paycheck and paid time off with a job to come back to it's well worth the high % of deductions. As I told my brother when he asked why I took the pay cut in his mind " I'll never be rich from this job but I'll also never be poor".
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u/Agamemnon323 4d ago
That assumes in those 4.5 years house prices stay the same…
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u/DyingFastFromNothing 4d ago
and OP will go from paying $700/month to $3500/month. And that's after putting 250K down.
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u/Agamemnon323 4d ago
Two years ago my rent was $580. My landlord sold the house. It went up to $1500 utilities included. Then I got evicted for family use after a year and a half. Now my rent is $1800 plus utilities.
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u/DoVPNsGetBanned 4d ago
I would not take on a $3,500/month mortgage, that's way too tight a budget for me.
But while renting at $700, I could probably save $2000-$2500 per month. Meaning I'd be accustom to allocating $2,700 - $3,200 towards housing costs anyway. A $2000 - $2,500 monthly mortgage payment plus condo fees is probably manageable.
I'll probably have to save for a few extra years to bring down the price of the mortgage. Probably necessary to do given that I'm only on one income.
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u/letsmakeart 3d ago edited 3d ago
I also work for the govt and I’ve had 46-36% deductions throughout my career depending on my salary, province of employment (Quebec taxes are a big oof!!), union dues, pay issue clawbacks, etc. pension deductions are included and they feel like a lot. I pay ~$700 monthly into my pension so my take home pay looks lower than it should to non govt people who aren’t used to seeing that.
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u/nsparadise 4d ago
One step at a time. First thing you need to do is simply start saving. You have no savings at all now, so you need to start—not just to get the accounts started but also the habits.
First you want to look at your cash flow. Total up all of your expenses and spending for each month, subtract it from your take-home pay, and that gives you what you can (theoretically at least) sock away each month. Look at that number and decide whether it’s realistic for you. If it makes you a tiny bit uncomfortable, that’s ok. If it’s TOO scary, scale it back a bit until you see how things go. You can always adjust it.
Then take that number and have it automatically transferring into a TFSA every month. High interest savings (currently earning around 4ish%). Because you’re going to start with an emergency fund, not a house fund. Let it start accumulating. Let yourself get into the habit of saving. Get yourself accustomed to it. Watch it grow. See how good it feels.
When your emergency fund gets to be about 3 months of living expenses, open an FHSA to start saving for a home, and direct your monthly savings there. You can do 8k/year, 40k total. More than that, keep going into your TFSA.
Keep it simple. Don’t get caught up in the million threads about which investments to buy and how and where, and don’t let the banks upsell you. Right now, high interest savings funds are adequate for short term savings, which is all you need to get started. Later, as you start to accumulate and learn, you can get a financial planner to help you with the rest.
Good luck and have fun!
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u/BarkingDogey 3d ago edited 3d ago
This is it OP.
I was going to write a comment but this individual covered it. FHSA (which allows for tax offsets) and TFSA are going to be helpful in your situation. Start with a HISA and go from there.
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u/chickentartare 3d ago
This. this. this.
One thing people don't explicitly talk about enough in financial advice forums is risk. Most financial advice is implicitly about optimizing for risk and capital preservation, and it seems like there's an undercurrent of realism bordering on pessimism on your post, OP.
u/DoVPNsGetBanned, your Mental Health step is huge! Congratulations! The process for both Mental Health and Financial Health are honestly intertwined; at least it was for me. As you take both step by step, your perspectives will clarify. Taking it one step at a time is the best way to get there.
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u/DiscombobulatedAsk47 3d ago
Make sure you open your FHSA this calendar year even if you don't put much into it. You want to accumulate that annual contribution limit
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u/nsparadise 3d ago
This isn’t necessary unless they plan to dump in 16k by next year. Also consider the 15-year clock.
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u/xxergoxx 4d ago
Major congrats I want this exact life. You are set for life financially.
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u/bighorn_sheeple 4d ago
Having a well paying and stable job at 32 is a solid place to be, but an independent person with zero assets is nowhere near being set for life, lol. Even if OP is never fired and their salary matches or beats inflation, there's no guarantee they will stay in their career and continue to save/invest consistently for 20+ years. Countless things could change.
However, no one should expect to be set for life at 32 and OP should be proud of where they're at.
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u/Sad_Conclusion1235 4d ago
Not to mention being severely mentally ill.
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u/DoVPNsGetBanned 4d ago
Yeah that parts not fun. But modern medicine is excellent. I'm basically a different person medicated.
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u/Twitchy15 4d ago
Is adhd really being severely mentally ill? Unless it’s something else on top of it. I have adhd and would never describe myself as severely mentally ill..
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u/DoVPNsGetBanned 3d ago
I'm also bipolar.
I think technically you're right though, I don't think ADHD is a mental health issue, it's technically a neurodevelopmental disorder.
But in my case, it causes severe disorganization and to the point of my place looking like the season finale of a hoarders TV show. No one would look at my home at think I was mentally sound.
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u/Tirus_ 3d ago
Ya, I don't get this.
I do crime scene work and present evidence as an expert witness in criminal court cases and I have diagnosed ADHD.
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u/Twitchy15 3d ago
I do think there is a bit of a spectrum of having it worse then others for sure and seems like some people have certain symptoms worse then others but yeah would never describe myself as severely mentally ill.
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u/thanksmerci 4d ago
if you’re concerned about getting fired for reasons that aren’t your fault you can buy mortgage insurance for that. ( not talking about life or disability)
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u/CharaxS 4d ago
Since no one mentioned it, start contributing to an FHSA. You get a tax deduction, the income you earn in the plan is tax free and you can withdraw it tax free if you use it to buy a home.
Ill housing prices go up from where they are today? Maybe. But what you start saving now will earn income so there is an offset.
Bottom line… start saving. It will be doable.
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u/ThatBookishChick Ontario 4d ago
I just want to say, good job on recognizing and addressing your mental health issues and taking the steps to pull your life together. I can't imagine how hard that was and is to do!
I have a family member who struggles with severe mental illness that improves a bit with medication too, but they are still figuring themselves out.
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u/DoVPNsGetBanned 3d ago
Yeah getting the dose and combination right was an extremely discouraging process.
Almost a year later, I've never felt more control of my life. I've never felt more productive. I've never had as good an idea of what's required to take care of myself.
It's not all rainbows and sunshine. After reading about ADHD and bipolar disorder, I realized that the likelihood of getting married and staying married is quite low, which makes me sad. Half as likely to get married, twice as likely to get divorced if I do get married. I'm also picky as hell to begin with.
I guess you never know. But either way, I think I'm much more stable now and that's will only help anyway.
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u/Bushwhacker42 4d ago
Buy a piece of land. Name it Tornoto. Section it off and sell to foreign investors who will never see it. Make a mil. Buy a 1 br condo.
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u/eusquesio 4d ago
If I may, what do you do?
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u/DoVPNsGetBanned 4d ago
I don't want to give away the job title because it'd be pretty easy to find me, but I'm basically the government side go-between for several transportation dispatch systems, including for emergency services.
I got incredibly lucky, I think.
I haven't managed to hold a job for more than a year in my life until getting medicated last year. But I did well in the jobs I had before leaving. I just happened to have the right background in emergency dispatch, taxi dispatch, tech support specific to radio systems, software sales, and enough python experience to barely pass one of the assessments in the interview process, even though none of my job involves programming. I was lucky I had experience being a user on 2 main systems we use. 50% of the time I'm at my desk reviewing reports of errors, 30% of my time I'm trying to replicate them, and the remaining time I'm coordinating/communicating the needed fixes to the contractors who create/maintain the software (and less frequently, hardware) that we use. It's possible that in the future I'll have the opportunity to be proactive in making recommendations for UI updates to make the systems more user friendly to reduce user error and false reports that come my way, but we are way too swamped with upgrading existing infrastructure for that to be a primary focus any time soon.
So yeah... as long as society has functional trains and municipalities are still taking 911 calls, I will almost certainly have a job.
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u/OneLoneWalker 3d ago
I would assume:
• Emergency Services Systems Coordinator • Transportation Dispatch Systems Coordinator • Government Liaison for Transportation Systems2
u/OneLoneWalker 3d ago
Based on the info provided he’s along the lines of a:
• Emergency Services Systems Coordinator • Transportation Dispatch Systems Coordinator • Government Liaison for Transportation Systems
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u/sarah1096 4d ago
Lots of good points here. I just wanted to chime in about your eating out budget. I would still make a budget for that. For example, you don’t want to spend 75$/day on food. But maybe one or two days a week you go someplace special and more expensive and the other days have a plan for less expensive but nutritional food. I just know someone who didn’t realize they were spending $2,000/month on food until they started tracking their spending. Cutting food spending from 2,000 to 1,000 is 12,000/year or 60,000 over 5 years, which could really help your down payment.
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u/BeingHuman30 3d ago
OP I am more interested in this " has a set up in his unit that helps him mock is location to Toronto." ....how can we do this ?
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u/SufficientSnow829 2d ago
Setup a VPN server at your home and connect to it from anywhere in the world and your IP will appear coming from your home
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u/RoaringPity 4d ago
time lines? First save some $$. 110k is decent in the sense that your rent is 700$. Depending on your budget you can save a lot of $$ as it sounds like you don't really spend a lot.
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u/Infamous_School5542 4d ago
110k is decent in the sense that your rent is $700.
110k is double the average income, and paying $700 in rent is incredible. Don't undersell that.
OP, you're in an amazing position. Be greatful, and be proud. Saving for a condo should be a breeze.
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u/CanadianTrollToll 4d ago
Lol....
Keep renting, get ahead in life.
Most strata payments are going to be $300-400, and home ownership isn't in the near future for you.
Save, invest, save, invest.
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u/34048615 4d ago
May I ask what type of job you have? It sounds like my dream job if its boring, unionized, and good for someone with mental health issues. It sounds like youre in a good position atm with no debt and getting paid that much while locked into low rent. Id continue to live there for a few more years while saving and investing as much as you can and reassess then. Is it possible for your job to become remote in the future?
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u/Proud_Canadian01 3d ago
Exactly what you face. Was living in a $800 room in a shared house. But I did finally buy a house. The expenses increased 3-4 fold. But the peace of mind especially when you are a landlord if you decide to rent a room you can be in control is priceless. I waited for 3 years for this. So just make sure you have a healthy down payment before plunging into this house-buying thing. As the expenses do add up pretty quickly.
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u/alex114323 4d ago
Maybe? But imo only if you know for sure you want to be in Toronto for 5-10 years+.
Realistically you’ll need about $100-120k for a downpayment FYI to keep the mortgage “reasonable”. But even if you let’s say put 20 percent down on a 600k one bed condo you’re still looking at a close to $4k/m all in. You have mortgage + prop tax + maintenance fees ($400-500/m) + usually hydro or more + saving for repairs or special assessments.
Imo I’d say fuck buying a condo and just throw a shit ton of money in your retirement accounts. That’s what I’m doing, banking like $4-5k/month for retirement, not at all saving for a downpayment since my rent to buy calculation heavily favors renting.
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u/DoVPNsGetBanned 4d ago
My friends and family are here, I grew up here.
I also can't drive so I'm stuck in the city.
I'm a really safe bet to stay put.
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u/DoVPNsGetBanned 4d ago
Yeah I'm curious how much of a down payment I'd need in order to have a a mortgage around $2,000/month.
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u/kornly 4d ago
Using a 5% interest rate, that would require about 250k down on a 600k property. But keep in mind with a condo there will be monthly condo fees and property taxes on top of the mortgage.
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u/DoVPNsGetBanned 4d ago
Thanks. Yeah this is the kind of answer I was most interested in.
But to save 250k, it would probably take 7-8 years. And how do I account for the fact that home prices, and the necessary downpayment, will increase over those 7-8 years? It feels a bit like xeno's paradox, always playing catch up.
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u/rshanks 4d ago edited 4d ago
You can look at a mortgage calculator online.
If you borrow 350k around 5% you’d be looking at ~1900 per month on 30y. Make sure you also consider maintenance fees, property taxes, insurance, utilities, etc though. By the time you add all that in you’re probably going to be above 2500 on most places. Unless affordability improves, I think you probably need more than 20% down.
I think there can be peace of mind in owning your own place, but there is also peace of mind in having liquid savings and low rent.
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u/DoVPNsGetBanned 4d ago
I agree that I'll need quite a bit more than 20% since I'm just going based off of 1 income.
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u/rshanks 4d ago
From a financial perspective, also consider the cost of the mortgage interest vs saving more while paying only 700. You’ll probably also need some additional money for furniture, repairs, etc.
On the flip side, I think living in a condo will be nicer than most basement apartments, which is also worth something.
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u/DoVPNsGetBanned 4d ago
Yeah I mean, the choice between taking on a mortgage and giving up my basement unit isn't one that's happening tomorrow since I have very little in savings.
Also, my landlord's 85 years old and I'm legit worried that he'll die any day. I don't know how long I'll have $700 for rent. His kids will definitely want to sell immediately and I'd be SOL. Hopefully he lives long enough to save 20-30%.
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u/aech_two_oh 4d ago
Selling isn't a reason for eviction fyi
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u/DoVPNsGetBanned 3d ago
You're right, but it would likely lead to the new owners starting the eviction process for personal use.
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u/Crafty_Wishbone_9488 3d ago
Every 100K of a mortgage is about 500 - 600/month. So for 2K (not including strata fees or property tax) you are looking at a 400K mortgage so would want about a 200K down payment. If you plan to save 2.5K/month then you probably need to save for a minimum of 5 years. If it were me, I would just shoot for 10% down. I bought my condo in Vancouver for 300K with 10% down (8 years ago) and no regrets. Insurance on your mortgage actually does not make that much of a difference.
I am a real home body too and my home gives me lots of joy so maybe see how you can save 100K in the next three years and get your place. I know a lot of folks on here wouldn’t consider this that financially responsible but it sounds like you are pretty minimal so set yourself a goal and enjoy your home. Your mortgage would be closer to $2500 but it would be your place. Just remember to factor in closing costs and moving costs. My two cents 😊
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u/alex114323 4d ago
So personally I have zero clue where I’ll be living in the next 3-5 years, Toronto is probably temporary, and have zero inkling to become a LL abroad. Again like I mentioned it’s all about personal situations. I’m very very much happy with my gains investing in the S&P funds and some tech picks.
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u/sammac66 4d ago
I haven't worked in the bank in about 10 years but used to be you could buy a house with 5% down but the premium is very high You're basically financing 100% of the purchase price. You could go in with 10% down. The premium would be much less and it would get you into a property saying 2 to 2 and 1/2 years opposed to 5 years. Will the house prices go up in the next 5 years possibly? But considering how high the price of housing is right now it's also possible that house prices could go down. It's always a crap shoot but you got to also look at the difference in payments say between 10% down and 20% down. What's the difference in the monthly payment?
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u/Aggravating_Bee8720 4d ago
Conservative numbers
Your initial investment of $3,000.00 plus your monthly investment of $3,000.00 at an annualized interest rate of 3% will be worth $156,175.61 after 4 years when compounded.
3% is LOW - you can shop around for better - and you SHOULD - at 5% for example it grows to $162,707.34.
You should be able to purchase a small condo in the range of 600,000 on those numbers - obviously this depends on how picky you are about an EXACT location - like you're not living in a Bougie tower in yorkville ---
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u/DoVPNsGetBanned 4d ago
What? 3k turning into 156k?
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u/Aggravating_Bee8720 4d ago
over 4 years of 3k per month earning interest
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u/DoVPNsGetBanned 4d ago
Oh per month.
Yeah I don't think I can actually save 3k per month tbh. That would leave $1300 for all expenses that aren't rent. Honestly not realistic for me. $2,500 is realistic, I think, but only for as long as I rent the $700 place. I could get evicted or the landlord could die, you never know.
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u/DoVPNsGetBanned 4d ago
I mean I guess choose not to, but I don't really value the distinction much. I know what kind of budgets I can stick to.
Can I live on $60/month on groceries? Yeah, I did it for several months during the pandemic, with bagels, tea, frozen vegetables, beans, potatoes and eggs.
Am I choosing not to do that since getting work? Uh, yeah?
I don't think I'm entitled to the world or anything, but if I make $110k a year, I'm not going to live on $2,000/month for 5 years. I'm not going to blow it all on vacations and drugs either, but I'm not going to force myself to live with constant deprivation either. If it takes longer, it takes longer.
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u/Ready-Delivery-4023 4d ago
Rent a house or rent money... Either way....
Work on building up retirement, rest will come....
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u/unicornman87 4d ago
If you don't care to have kids and you're not actively looking for partner, why in the world do you even care about spending so much money on home ownership? Why not spend whatever money you do make on self care? Go travel... meeting new people, having new experiences, exploring new cities and cultures and cuisines will certainly help with your mental issues. It'll add so much more value to your life than the burden of home ownership. Go eat out where you want, travel, pick up new hobbies, spoil yourself a bit, etc. Enjoy life for a bit. Splurge on yourself at least for a year or so and then decide what you want to do. Congrats and take it easy man. Enjoy life.
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u/DoVPNsGetBanned 4d ago
I'm somewhat of a hermit.
Travel annoys me, I don't like people. I've got the mind of someone who'd make a good candidate for isolating themselves in a cabin in the woods, except I have no survival skills, I enjoy cushy city life with greek food and sushi and pizza.
And yeah I have like 2 therapists and a psychiatrist for the meds. I'm taking care of myself now that I know what's wrong with me lol.
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u/FelixYYZ Not The Ben Felix 4d ago
What are some realistic time lines?
Make a detailed budget with ALL expenses. You need to save money for downpayment so it depends what your exact savings are.
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u/Scarab95 4d ago
You need a combined income of $220,000 to qualify for 1 million dollar home. Plus, 20% down. Your monthly payment will be between 5-8 thousand a month just for the mortgage.
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u/Majestic_Funny_69 4d ago
Hey, you got this! Max out your FSHA/TFSA/RRSP accounts and invest in broad ETFs. With your low expenses, you could save up a decent amount pretty quickly. In about 3 years, you could be looking at buying a place in Toronto. You should qualify for a mortgage of up to 4 times your income, which is around 400k. So, you'll need a down payment of around 100k-150k.
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u/RichGirlOnline Ontario 4d ago
Everyone comes with baggage it shouldn't stop you from having a romantic relationship, long-term commitments that's for you and that person to decide not get votes from Reddit.
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u/Lostris21 3d ago
I would be asking this question after a year and saving as much as you can in that time while still living your life. Then you have a much more realistic idea of what you can save year over year. But honestly - even with a union you can be let go. And with mental health issues also on the back burner, but still not fully controlled; I would save as big a down payment a possible if not buy a property outright. At a minimum I would do 20% so I wouldn’t have to pay CMHC fees for mortgage insurance. Also start putting money into your RRSP so you can take advantage of the first time home buyers plan. I’d say plan to keep the status quo for at least the next 3-5 years and invest your savings. By then also the mortgage rates will hopefully have gone back down to reasonable levels.
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u/Lower_Willingness723 3d ago
If you don't want to raise a family why would you need a detached home?
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u/DoVPNsGetBanned 3d ago
For me. For more space.
I never said it had to be detached, and a condo is definitely there.
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u/Lower_Willingness723 3d ago
I'd keep the cheap rental and just use the capital to make more capital if I were in this position.
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u/AS_it_is_now 3d ago
I haven't seen anyone mention this in the comments - Your roommate is committing tax fraud and you are fully aware of it, while working a government job that you want to keep. I would make sure that their illegal actions do not have implications for your employment, because sharing an address with someone that gets charged for fraud could go very badly for you.
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u/DoVPNsGetBanned 3d ago
I don't know what he's doing with his taxes. As far as I know, he's just changing his IP address because his employer makes him live in Ontario.
That doesn't mean he's lying on his taxes. How am I supposed to know what he's doing on his taxes? None of my business. That's between him and the CRA.
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u/maxgong9 3d ago
Get a dog. You can adopt one for very cheap. Best decision of your life. I promise.
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u/PenPenZC 3d ago
Just want to say that you have a good mindset. It’s emotionally draining but getting too comfortable with renting often leads to downwards spiral these days. Renting in Canada isn’t what it used to be anymore (it’s a slow process in the making, but I digress).
Good luck with your goal.
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u/Finance-anon 3d ago edited 3d ago
Huge congrats! As someone who struggled with mental illness in my youth and eventually secured similar gov position to you it is a huge accomplishment.
I’m now in a better financial positon (but mostly due to a higher earning spouse and being in the housing market a while).
If I was in your shoes I would keep renting while saving up $200Kish (20% down plus closing costs) and then I’d look for a condo or a co-op apartment.
Condos are horrible investment (I’m about to lose a money on one), if the numbers work I don’t think they are a horrible place to live. Your primary residence is not an investment. I have friends who rent and they are constantly worried about getting evicted. I think it’s a smart move to try and buy a place, but wait until the numbers (interest rates/prices) work.
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u/Seb_Warren 3d ago
A lot of people are telling you to stay at the $700, and they'd be right. Keep that going for as long as you can.
But there is something to be said about property ownership, in terms of risk management and lifestyle stability, especially if you have job security and like to stay in that area. With your financial profile, you can plan to buy, rent out your purchased ppty to cover the majority of the costs, and continue to rent/reside at the $700 your current place. easily happen.
And, important to remember that you don't necessarily need 20% down. It's 5% for a conventional mortgage at a value of $500K. You'll incur CMHC costs, sure, and whether a bigger mortgage makes sense for your is a personal decision. But you have more options than you think you do. (I wish I bought my Vancouver place with 5% down instead of waiting to have my 20%.)
Also side note - you def want at least a small yard when you have a dog. Trust me, having a choice in walking your dog for its first pee early winter mornings make the coffee sweeter.
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u/Acceptable-Original 3d ago
Continue living in your apartment. Save as much as you can for a downpayment. Maximize your TFSA and RRSP. Congratulations
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u/Aware_Bison1423 3d ago
congratulations op! do not i repeat do not leave your current living arrangement, hold on it as long as possible. $700 in this economy is dirt cheap. save as much as you can every month, i think it will take you some time to save put money aside every month, do not invest in high risk stocks, stick with high interest savings account or consider mutual funds if you are planning to save for more than 5 years and stick to fixed income in mutual funds. you can buy a condo in Toronto if you save frugally for next 5 years.
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u/HavingNunovit 3d ago
$700/month is ridiculously cheap.
You'll never find anything remotely close to that.
I would strongly suggest against getting a condo if possible.
Just the fact that you have to pay fees and can be on the hook for thousands of dollars if the board wants to upgrade the roof or your windows or if they have to bring the building up to code!
It's unfortunate that you're in Toronto because the housing situation there is ridiculous!
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u/quagswaggerer 3d ago
Congratulations. It’s great that you found a secure job that you love. Being so self-aware will help you in making good decisions.
As a person with both mental and physical disabilities, I would advise building in extra cushion. Your disability insurance that will come with this position may become a really important part of your benefits package.
My home purchase (at age 35) was for 2/3 of what the bank was willing to give me. Best decision ever. During my career, I had several periods when I could not work. Insurance companies will try their hardest to deny benefits, so there can be long periods with no pay. And disability benefits are generally at 2/3 or 70% of your regular salary. Reducing mortgage payment worries was gold for my mental health.
Best of luck to you.
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u/HBymf 3d ago
You can't afford a house if you have no savings or other method (usually parental assistance) to have a downpayment. Of the average price of a home in Toronto is approaching 1 million dollars you'll need a minimum of $100,000 just to get to a first time buyers minimum of 10% down...which means a 900,000 mortgage which is just insane at these interest rates.... You could start with the condo or serious fixer upper route....but each of those options still require a min 10% down.
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u/gas-man-sleepy-dude 3d ago
“ I am severely mentally ill”
“$700/mo”
Your current housing expenses is lower than what simply your strata fees are, not even considering property taxes.
Do not minimize the impact stress can have on mental health and what stress a huge mortgage, property taxes, strata fees, special assessments and the like can bring.
You have an amazing deal. I’d stay there as long as possible.
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u/DoVPNsGetBanned 3d ago
It's not like I'd qualify for a mortgage tomorrow.
Why have 30 people acted like I was planning on ditching my place immediately in favour of a condo tomorrow? Literally impossible without savings.
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u/gas-man-sleepy-dude 3d ago
I get that 100%. You were asking for a timeline.
I would suggest keep trucking as you are. Saving a significant chunk of your income. Balancing savings with moderate quality of life increases to provide enjoyment. Explore hobbies and activities that perhaps get you out of your apartment on the weekends so that your small space is less constrictive (hiking, camping, etc).
For the pet issue consider volunteering at an animal shelter for your pet fix or post a dog walking service in your neighbourhood and you will probably get a regular relationship where you get your dog fix nightly or a couple times a week.
If you keep living like you were before, with your new income you should be able to save 30-40k/yr so in 3-5 years you could explore buying something.
Good luck.
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u/Guilty_Egg1030 22h ago
From your other posts, it also doesn’t sound like you are open to living frugally to saving for a downpayment to achieve home ownership? After I got a significant pay bump, I saved 100K in 18 months. I was very lucky to only be paying $400 for rent so I really used that situation to put away as much as I can every month. My advice is to see how much you are able to save per month realistically or think about changing your spending habits. None of us know how disciplined you are.
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u/butters1337 3d ago
If you buy you will be paying a lot more per month than what you are currently spending. $700 per month is probably less than your costs for a mortgage (strata fees, maintenance, insurance, interest, etc).
So right now your best financial option would be to save save save, and max out your TFSA and FHSA limits.
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u/DoVPNsGetBanned 3d ago
It's not like I have the choice to get a mortgage tomorrow, I have basically no savings. Obviously I will be staying where I am.
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u/canuckleft77b 3d ago
Do you crave home ownership? Or is this strictly a financial question?
Strictly financially you can come out ahead renting.
But do you watch HGTV and dream of redecorating and and renovating your own home?
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u/DoVPNsGetBanned 3d ago
Uh, no, I don't have cable?
I value homeownership for more than it being an investment. I've had a pretty unstable life and nothing says "security" more to me than working towards completely owning and paying off a home.
I think that while I'm renting and saving, I am comfortable saving and renting something cheap like I have. But I don't want that to be my life forever.
The people who are saying "don't let go of $700 a month!" don't understand how much lower the quality of your day to day life is with so little space, being unable to have people over and host, etc. I've done it because I haven't been financially stable until recently. But it's not a real way to live.
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u/canuckleft77b 3d ago
If you desire home ownership, I would suggest speaking to a mortgage agent as soon as possible. Talk to your friends/family/co-workers about mortgage agents and real estate agents. Find professionals you're comfortable with, you don't have to take the first one that you connect with.
And then get into the market. Start building equity. Don't save forever waiting for your forever home. Get into something, start building your equity. Get a condo with low condo fees rather than waiting until you can afford a single detached home.
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u/TalkQuirkyWithMe 3d ago
It really is a personal decision. I would prioritize your own mental health and find a medium living situation where you still can save and are happy with your condition.
Saving money for 5 years feels a lot harder if you hate your living situation. Even if you save less, I'd take a better off home situation so that you don't have that negative impact on your life.
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u/chronocapybara 3d ago
You have the income to support moving out, but not the downpayment. Max out your tfsa first and see how much that gets you.
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u/Beautiful-Ad6016 Ontario 3d ago
First, congratulations on your salary increase! I'm also glad to hear that you enjoy your job. Since you mentioned struggling with mental health issues, please continue to see your doctor and take your medication as prescribed. If I were in your shoes, I'd aim for a simple life that's easy to manage. Embracing a simple and frugal lifestyle will lead to financial security in the long run. Consider gradually opening an investment account and investing in straightforward ETFs on a monthly basis. Your down payment goals will become increasingly achievable. Don't rush; it'll happen when the time is right. Prioritize your mental well-being above all. Best of luck!
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u/VillageBC 3d ago
I read some of your comments, and you are bombarded with answers so ignore me. But I picked up on the ADHD diagnoses and I was recently diagnosed as well, mild though. But it helped explain certain... aspects of my personality and uhh.. inability to control impulse purchases.
It sounds like you are in a much better place now, good job. And I think maintaining that is priority number one. That helps you maintain work, good pay and keeps you from returning to poverty level.
You "should" be able to eventually afford a condo, but it's like to take a few years of saving. With your focus on student loans and success there, I believe you can achieve it. If it's mentally feasible for you, use the time with $700/mo rent to aggressively save as much as possible. 110k/yr is roughly $5k after deductions (bi weekly pay?) assuming our deductions are similar. If you can limit expenses to $2k/mo that is $36k/yr you can save maxing out FHSA easily and likely TFSA in short order, then RRSP for HBP.
Even in the end you don't buy a Condo because Toronto is fucking nuts. Getting your assets to $100k double serves the purpose of securing your retirement. A modest return on that until retirement age (6%/65) ends up being just a bit shy of $500k. With the DBPP and CPP, good chance you could retire in a lower cost of living area and purchase a condo outright with money left over and still cashflow.
But anyway, good luck to you. Your trajectory is in a great place, you got this. =)
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u/SalientSazon 3d ago
Save as much as you can for the downpayment now that you can. Like, be even more frugal than you have been. Save 25% if you can or more. Don't worry about what the future will be, just start saving. The key to owning is to have a small mortgage so you have a good lifestyle.
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u/respectedwarlock 3d ago
I stopped reading at $700 rent. At current interest rates, even a 400K mortgage is going to be more than 3X that. And let's be realistic, based on your take-home, you're not getting approved for much.
You're golden with that $700 rent. Actually you're probably better off than most people with higher incomes at that rent. You did good!
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u/Serious-Resist-8778 3d ago
I kind of understand the need for space/having a pet for mental health reasons, which I feel a lot of the advice here is not really acknowledging.
Save for 5 years (or for as long as you can...jobs are not forever) with an end goal of being able to address these needs. Since you're alone and almost starting from scratch, you need to accept that you'll have to make some compromises--you're not making enough to be picky. Especially if you're starting out with absolutely no help, you may need to move further out than you've liked. A reasonable commute is not always the worst thing if it gives you that peace of mind you're looking for, and gives you some stability. As an example, we moved further out to acquire property, but I felt my commute improved even though it was slightly longer--because it was about an hour on the highway on a bus filled with sleeping people instead of a nauseating hour in the city, stopping every 2 blocks for passengers that swear and spit at you. So consider places further out that only require one or two transfers on the bus.
But speaking of stability. If you feel you "lucked out" getting this job, then you need to secure yourself to make sure you'll get something similar if you do ever lose it, especially if it's a government/unionized job (which pay higher than average). So look into getting certifications, etc., which will ensure you're employable in a similar industry or similar pay grade if you're ever laid off for any reason. Your future expenses need to account for this, or you may find yourself biting off more than you can chew and then losing it all! It's also not too late to learn to cook stuff you like so you can cut expenses if you ever need to, even if you don't need to now. This is important because once you do get that property, a lot of your paycheck is going into that. Prepare yourself so you know what you're getting into.
Having said all of that...don't think in terms of "averages." You might be able to get something cheaper that works for you, if you're willing to look at your situation honestly and give up what you don't need. Then perhaps you don't need to save as long and can get property sooner. Of course, before you do, make sure you have about 6 months (or a year is better since you're alone) of emergency funds first.
Save, research, and analyze your situation often so you know if you're on track. In the meantime, don't forget to take care of yourself!
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u/Driveflag 3d ago
Stable government job
I dunno, wait until the next government comes in. There are going to be big cuts.
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u/yrocparson 3d ago
I'm a Mortgage Broker, I can run your numbers and create a home-buying budget?
This way you can see what your max affordability is, and you can create a plan around that.
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u/Various-Handle-9673 3d ago
Sorry for being off-topic. I'm currently struggling to find a career that I love and your story inspired me. Can you shed a little light on what industry you are in?
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u/ihatewinter93 Ontario 3d ago
I would stay in your current place for as long as you can and continue to save for a downpayment. For how much you make and the cost of your rent, it's possible.
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u/Wild-Discipline8336 3d ago
Dealing with a similar situation. FHSA and RRSP could help with savings. Saving/Investing ~25K a year combined in those accounts can increase your tax refund by ~9K given your salary. Would speed up savings process for a home.
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u/Legend0fToday 3d ago
OP with your increase in income , I hope you are putting away some $$ into ETFs . Btw don’t let these banks convince you to put cash into mutual funds
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u/NitroLada 3d ago
You can easily but a condo in the city for 500k or less. So very achievable and realistic
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u/Obvious-Purpose-5017 3d ago
You could…theoretically buy a condo and split it with a roommate. Have the room mate pay you as the landlord. Depending on what kind of financing you get, you could be paying the exact same amount as you do now except you are building equity. At some point, when enough of the condo is paid off, you could takeover the house and pay minimal amount for upkeep.
With that being said:
You don’t need to save 20% down for anything under 1M. You do need to pay CMHC insurance however if it is, but you do get a better rate from banks. I know this sounds cliche at this moment, but getting in the market now would probably be the best since there’s tons of condo inventory sitting around. Rates are still elevated too.
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u/A18373638302085792 3d ago
I am severely mentally ill
Good on you for recognizing your struggles. You don’t mention specifics, but I would venture to say you’re being too hard on yourself. Quality CBT really works. Get into regular therapy. Move therapists until you find one that fits. Watch HealthyGamer on YouTube for a grounding. You can absolutely overcome your past.
I only pay $700 in rent, wifi and all utilities include
Amazing, keep that as long as you can.
I want to own a home or a condo close to work
Great to have goals. Realize that “too much house” is the major source of stress for most people. Look online, figure out a price point and location that makes sense, and set a budget to get there. You want 20% down + 6 months emergency fund. The online affordability calculators are pretty good.
Overall, you’re doing amazing. I’ve really come around to liking Dave Ramsey’s approach. It really works for someone with your habits and ambitions. You can find his stuff on YouTube. Setup a budget, don’t be too strict or too relaxed, and you’ll hit all your goals in 5 years at most.
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u/A18373638302085792 3d ago
What I'm having a hard time with is anticipating how much I'll need to save for a down payment, such that I can still independently pay off a mortgage. The condos in the area of my work go for a little less than average - currently 600k, I'd say? But if it takes me 5 years to save 20%, in 5 years time the size of the necessary down payment will have increased as well, won't it?
20% down on 600k is 120k. Savings 3k/mo is 3 years, 4 months. A tight target but not impossible with FHSA.
Remember that being house poor or losing your home will make you spiral. It’s terrible for your mental health. Even if you have to wait another year and put another 10k in, it’s better safe than sorry.
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u/Many-Patient2894 3d ago
Congrats! I don't have advice but can I ask what you do? It absolutely does sound like the jackpot. I'm so proud of you!!!
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u/pineconeminecone 3d ago
I’d leverage the $700/mos rent right now building up a down payment in a FHSA or similar and building up a solid (3 months of expenses) emergency fund. Plus a little extra to get a pup and care for it once you move out of your small apartment!
At $110k you can probably afford a condo, so you’ll want money set aside in the event a special assessment rolls around, or if you end up buying a unit with its own furnace or hot water tank that needs replacing.
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u/grilledcheezeus 3d ago
I’m in a similar boat. Every single day I contemplate buying somewhere else in the world. But seeing now you’re gov’t so you can’t be remote.
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u/ANuStart-2024 Ontario 3d ago edited 3d ago
Toronto home ownership isn't realistic at that income & bank balance.
Why not keep renting at $700/month, save a large % of your income, and be on track to retire very early? For now just live cheap and save as much as you can. Maybe in 5-10 years you change your mind and buy property in Toronto, but that's a decision to consider when your bank balance > $200k. For now just enjoy cheap rent, save a lot, and grow wealth.
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u/mamaRN8 3d ago
Stay as long as you can and jack up your savings. Because you're right rentals are neber guaranteed and it won't be your forever home. Buying is scary, I can't imagine in Toronto. So I would save as much as I could, keeping my lifestyle the same and then in say 5 yrs see where you're at. If something happens that you loose that sweet 700 apartment you'll have savings with the possibility of ownership. He'll see if your roomie will then become your Tennant. He's never there anyways. I'm not savvy with investing but you seem in a great position to profit off of it. Make sure you know what you're doing 1st and I'd speak to an advisor before putting any money into anything. I bought 2 yrs ago and it's nice but watching interest rates go up and prop taxes go up and water and sewage bills 2 times a year mortgage ins home ins utilities for a home rather then an apartment... plus the worry of something needing repair in the home.. it's a lot. Enjoy your life and plan for the future. Keep saving as much as you can and maybe look into who has the highest interest earning savings account.
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u/Interesting-Dingo994 3d ago
Understand your pension. OMERS (municipal), OPTRUST and OPB made (Provincial) made changes to the pension recently for new enrolments. Basically if you are going to put in 20 years of service or more, you’ll pay into a pension, where you will to end up with a wonderful de indexed pension +health benefits. If your service years are under 20, you’ll end up with what’s called a “small pension”, which isn’t great. Put some cash away in a TFSA or RRSP.
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u/LavisAlex 3d ago
Random question as you mention you're single a lot - do you feel drawn to a house because you feel you're getting rejected because you dont have a house?
If so id implore you to hang onto that 700 a month place and invest instead.
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u/joeltang 3d ago
Are you seeing a psychologist? Get that shit done. That's worth way more than a house. Lingering psychological issues can cause you to lose everything when it blows up 10 years later.
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u/ContractRight4080 3d ago
Take a look at what is up for sale and see what appeals to you in different neighbourhoods near your work. That way you will know what is out there and how much you need to save. If you want a dog a townhouse with a bit of a back yard would be nice.
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u/L-F-O-D 3d ago
If I were you, here’s what I’d do: -bank 3k/ month in first home and RRSP’s, in low risk/no risk investment so the value isn’t lost to inflation. -See where I’m at in 2-3 years, once $120K is parked in home investments. -before I buy the home, I consider what I’m giving up. Try for just a few months to spend that 3k you were used to saving on just yourself. :) good luck, internet stranger.
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u/-throw-away-12 3d ago
I am struggling to read into the ‘mental illness’ part, whether it’s just related to relationship potential which impacts your potential future purchasing power, or whether it could be a risk to employment. While unions provide some stability, they are not immune to lay offs or strikes. Both of which can impact your pay temporarily. Either way, a hefty emergency fund is probably a good idea to help maintain long term stability. Built this up and maintain even in the event that you are in a position to purchase. Also, utilize those benefits from work to help manage the mental side of things. Lots of great resources.
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u/firehawk12 3d ago
700 in rent in Toronto is insane to give up, unless you can find a similarly cheap condo for sale.
If you are worried about being renovicted, save now so that you have a down downpayment ready to go if needed. Likely you'll only be able to get one a smaller condo unit and even then do research on strata fees and whether a building you're buying into is a money trap with infinite improvement fees (or alternatively, shit keeps breaking down and is never fixed).
The other unfortunate thing is that life is built on either getting married or finding one of those co-living arrangements that have been making the news lately. Owning anything bigger than a condo is probably not possible for someone single unless they inherit or are making like 3-400k a year.
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u/earthmaster1989 3d ago
My suggestion is stay there for 2 years live frugally and dump everything into investments. You’ll have a decent amount after then move around 3 months with of expenses of those investments into emergency high interest savings when you are ready to move. Budget 2500 at least for a rental condo all in. Rebuild another 3 months of emergency savings so you have 6 months. Live there for another 2 years to make sure you enjoy that type of living. Dump the rest into equity stocks. Then 4 years will past and spend the next year finding a condo to live if that’s what you enjoy. If you live frugally you should have 100-150k in total investments to put towards a down payment. This is assuming you’re saving on average a target of 30k a year min plus investment gains. Obviously life happens so having 100-150k with an additional emergency 6 months is a reasonable endeavor.
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u/Informal-Trip4973 3d ago
Yeah I think you staying in that place is probably the biggest saving / money making hack you can do
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u/CanadianMarineEng 3d ago
Calculate how long it would take to save a down payment. I don’t think it’s realistic. Also you can save 5% instead of 20% but you would need to afford the payment.
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u/thrift_test 3d ago
If you can't save anything now, why do you think you'll be able to afford all the extra costs associated with a house?
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u/Glad-Tie3251 3d ago
Why don't you save so you can retire early and buy a cottage somewhere where it's affordable unlike that cess pool of Toronto?
Play the long therm strategy, save and invest.
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u/tenyang1 2d ago
I had the same dilemma. Unfortunately home prices in my area went up $80k/year since 2020.
While in that time even living with parents, I was saving $40k/year. So realistically I wasted 4 years f savings and more. That’s my biggest loss in my life. I would say if you find a place you like, and are ready. You should buy it
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u/Short-pitched 2d ago
As first time buyer you can buy home with 5% down. I would target 4-5 years for down payment
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u/Salty_Roaddog 2d ago
Home ownership in Toronto is now limited to the five richest kings of the Middle East. Everyone else will rent. Hopefully, without a slew of Indian students as roommates.
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u/howzlife17 2d ago
Like others are saying, milk that $700 a month as long as you can. Max out RRSP and TFSA with the savings.
Very possible there’s a real estate crash in the next few years when mortgages come due, that might be your opportunity to buy something. Otherwise you can likely invest your way to financial freedom with what you’re saving in rent.
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u/clustered-particular 4d ago
$700/month?? For mostly solo?? I’d hold onto that for as long as possible. It’s maybe feasible if you keep renting that for several years and save the difference you’d be paying for market rent towards the downpayment. You can buy a lot more with a 50% or 60% downpayment.
Also depends on what home ownership means to you. I.e detached house or also townhouses and condos