There’s a lot to love about Midtown Toronto – especially for first time home buyers. With great communities, a wide variety of homes, and a family-oriented atmosphere, it’s the ideal place to lay down roots. That said, Midtown’s high quality of life comes with a high demand for local real estate. This, paired with the unique economic conditions facing today’s first time buyers can make entering the cycle of homeownership a challenge.

As a result, this generation of first time home buyers will need to get creative if they want to maximize their buying power. In this blog, we’ll share our best tips for doing exactly that.

Don’t Go in Alone

One of the most effective strategies for first time home buyers looking to purchase a home in Midtown Toronto is to be open to outside support. While it was once common for younger buyers to enter the market solely on a single income, that’s simply not feasible for most people today. In light of this, many younger home buyers in Toronto are offered some degree of financial support from a family member (often one or both parents) towards their home purchase.

This isn’t always a first choice solution for many first time buyers as borrowing or receiving money from a family member can be a sensitive process. However, it is ultimately a strategy worth considering. Despite the anxieties that may come with receiving private financial support, it can give buyers a drastic boost in what they’re able to afford.

Beyond accepting financial support from family members, first time home buyers can also expedite their path to homeownership by pooling their resources with someone else. This could mean purchasing a home with a partner, sibling, friend, or with a co-investor.

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Use Your Home to Generate Income

The demand for rental housing in Toronto is some of the highest in any North American city – with average rental rates to match. While this is a common motivator for many first time home buyers to finally break the cycle of renting, the dynamics of Toronto’s rental landscape also present highly beneficial opportunities for homeowners. More specifically, renting out a portion of one’s home and using the returns towards mortgage costs. This could mean renting out a spare bedroom or having a dedicated secondary suite on the property.

Once again, this may not be initially appealing to all first time buyers. However, the financial benefits of this strategy are often substantial. Beyond just earning high quality income on a monthly basis, adding a turnkey secondary suite to a Midtown Toronto property can be a serious value-add, allowing first time homeowners to build even more equity as time passes.

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Don’t Forget About Government Incentives

Finally, first time home buyers should make sure to take advantage of all the available incentives that are available to them. In Toronto, first timers have access to a wide range of programs offered by both the Provincial and Federal governments. These incentives vary in what they offer (and who’s eligible), however, they’re all designed to alleviate the financial burden of buying a home.

What First Time Buyer Perks Are Available in Midtown Toronto?

  • First-Time Home Buyers’ Tax Credit
  • Canadian First-Time Home Buyers’ Incentive
  • Rebates on Land Transfer Tax

These programs are a great way to reinforce a strong plan and budget, but they shouldn’t be relied on outright. Like any government initiative, these incentives are subject to change or evolution at a moment’s notice. With that in mind, first time home buyers should work closely with their real estate agent and financial planner to ensure that they’re aware of and utilizing any and all relevant programs.

Ready to buy your first home? As Midtown’s leading real estate experts, we can help! Reach out to us at david@batorigroup.com, bobby@batorigroup.com or call (416) 485-7575 to learn more.