Wedding Or Down Payment?
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: