08/14/2026
🏡 A MESSAGE TO ALL FIRST-TIME HOME BUYERS!
One of our young clients, a newcomer who has been in Canada for less than three years, has just invested in this beautiful 3-bedroom, 3-washroom freehold townhome for $701,000.
No wealthy parents in Canada. No decades of savings. Just a clear goal, disciplined planning, and the courage to take the first step toward building a future in Canada.
Here is what makes this purchase especially significant:
A comparable home was selling for approximately $1,150,000 in March 2022.
Today’s purchase price: $701,000
Difference: $449,000
Approximate price correction: 39%
That is a massive adjustment from the peak of the market—and it is creating one of the best affordability opportunities first-time buyers have seen in years.
Yes, interest rates are higher than they were in 2022. But buyers are now purchasing certain homes at substantially lower prices, with the opportunity to refinance if rates improve in the future.
You can renegotiate an interest rate. You cannot renegotiate an inflated purchase price after you have bought the property.
Here is what purchasing this home could look like at a 4% fixed mortgage rate, based on a 25-year amortization:
🔑 MINIMUM DOWN PAYMENT
Down payment: Approximately $45,000
Mortgage payment: $3,466 per month
Property taxes: $454 per month
Total monthly payment: $3,920
🔑 10% DOWN PAYMENT
Down payment: $70,100
Mortgage payment: $3,319 per month
Property taxes: $454 per month
Total monthly payment: $3,773
🔑 20% DOWN PAYMENT
Down payment: $140,200
Mortgage payment: $2,950 per month
Property taxes: $454 per month
Total monthly payment: $3,404
But here is the number many buyers overlook:
Approximately $1,000 of the monthly mortgage payment goes toward reducing your principal and building equity in your own home.
Using that conservative estimate, the approximate net cost of ownership after accounting for principal repayment becomes:
✅ Minimum down payment: $2,920 per month
✅ 10% down payment: $2,773 per month
✅ 20% down payment: $2,404 per month
✅ Ave rent for a 3 BR home is $ 3000
The principal is not disappearing like rent; it is gradually becoming your equity, your asset, and your future wealth.
There is also another strategy worth considering.
If you have approximately $140,000 available, you do not necessarily have to place the entire amount as a 20% down payment, especially if you are uncertain about the economy or your job security.
You could invest approximately $70,000 as your down payment and retain the other $70,000 as an emergency reserve.
That reserve could cover approximately 20 months of mortgage payments and property taxes if life or employment suddenly became challenging.
Sometimes, putting every available dollar into the down payment is not the safest strategy. Maintaining a healthy financial cushion can provide something equally valuable:
Peace of mind, flexibility and time to recover from the unexpected.
The first home does not need to be your dream home.
It simply needs to be the home that gets you started.
While some people continue comparing today’s market with yesterday’s headlines, informed buyers are comparing the numbers, recognizing the correction and quietly building their futures.
A comparable that was approximately $1.15 million at the 2022 peak and a purchase today at $701,000 shows why this may be one of the strongest entry points first-time buyers have seen in years.
📩 Thinking about buying your first home? Let us review your income, savings, and available options—and build a realistic plan without pressure.
📞 Riyaz Rauf: 647-283-1966
RIYAZ & RUSHDI RAUF
A HOUSE SOLD NAME
Others Promise. We Perform.
DATA, NOT DRAMA.
Riyaz Rauf — REALTOR® / Salesperson
Rushdi Rauf — Broker
CENTURY 21 INNOVATIVE REALTY INC., BROKERAGE
Figures are estimates for illustration. Minimum down payment above $500,000 is calculated using Canada’s tiered rules. Mortgage insurance, home insurance, utilities, maintenance, and closing costs may apply. Principal repayment varies throughout the mortgage term.
