Wedding Or Down Payment
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Wedding Or Down Payment?

BySharon Jung

Prioritizing A Wedding Over Mortgages Their top priority was to save enough money for their wedding next year. Like many couples, they realized that splitting their focus between a down payment and wedding costs would stretch their finances too thin. Renting would give them stability and space to plan for their big day, without the pressure of achieving homeownership. They would start saving for a down payment after their wedding and honeymoon. They found a one-bedroom-plus-den rental in a prime location by the Yonge-Sheppard TTC Station with great local amenities nearby. While the unit is a bit small for two people working from home full-time, they’ve tried to make it work with their budget. Their monthly rent is $2,550, with an additional $720 going toward utilities and other expenses, totalling about $3,270 monthly. With a combined annual income of around $120,000, they’ve set a realistic budget that allows for wedding savings and a bit of financial breathing room for other expenses. However, their rent is money that is not building equity or going towards building a future for their new family. Why Buying Might Be the Smarter Move Here is where we noticed the opportunity that Ginny missed. Ginny has already saved up a significant amount of $80,000 towards a down payment while living with her parents. On the other hand, Harry has been renting for the last 5 years and has much smaller savings. With their income, financial discipline, and a clear timeline in place, Ginny and Harry are actually in a strong position to explore homeownership before the wedding. Locking in a home now in 2025, while interest rates are still relatively low, average resale pricing is low, and inventory is available, could set them up with a lower monthly cost over time, not to mention achieving homeownership and building long-term equity growth. Their current rent is comparable to many mortgage payments for condos or low-rise homes in similar neighbourhoods. Plus, they would be investing in their future together rather than paying someone else’s mortgage. Even if they need to adjust their wedding budget slightly or look into smaller down payment options, the long-term payoff would be worth it. To lay it all out mathematically:

who-are-the-first-time-home-buyers?
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Who Are the First-Time Home Buyers?

BySharon Jung

Buying Through the Uncertainty Among the first-time home buyers, 67% felt uncertain or had concerns during their home-buying journeys. Their concerns ranged from living with high monthly carrying costs to interest rate increases, as 63% are already overpaying for a home worried about their future finances and mortgage payments. This fear may explain why more than half of these first-time buyers opted for co-ownership: purchasing a home with their parents, siblings, or even their friends instead of their partner or spouse. Most FTHBs believe that they have received the best mortgage for their needs. 56% chose a fixed mortgage, leading to 72% saying they are comfortable with their mortgage debt. 79% believe that homeownership is a good long-term financial investment, and 71% are confident that the value of their home will appreciate in the next year. Gifts and Incentives: A good 41% of FTHBs have received monetary gifts or inheritance towards their down payments, averaging $74,570; however, 80% of those who received a gift stated that they would have proceeded to purchase a home even without one. This means that purchasing a home would have still been within their means, whereas only 65% have paid the maximum of their budget. Other incentives that have helped first-time buyers include utilizing savings from a tax-free home savings account (FHSA) and savings outside of a registered retirement savings plan (RRSP). A Home Buyer’s Plan (HBP) is an FTHB program that enables a withdrawal of up to $60,000 from an RRSP to purchase a home, requiring repayment of that amount over 15 years. The federal government has also recently released a new GST relief program for FTHBs to receive a full GST rebate on new homes valued at up to $1 million and a phased reduction between $1 million and $1.5 million, which means FTHBs can save up to $50,000 on taxes. Unexpected Costs: Even though a majority of first-time home buyers discussed potential unexpected homebuyer costs with their mortgage professional before purchasing, 44% still incurred these unexpected costs. From lawyer or notary fees to home inspection and immediate repairs, these costs may have been anticipated and factored into the budget if they had known what to expect. 56% of FTHBs utilize social media, including YouTube, Facebook, and Instagram, to receive information regarding mortgage options. This is where it is crucial to do your homework to research and fact-check the information you are receiving! Much of the news and circulating information can be stretched, misrepresented, or not offer the whole truth.