Only one Ontario city made the list of Canada’s 15 cheapest cities during the first year of homeownership, a new report says.
Greater Sudbury is 13th on the list with the first year of homeownership costing an average of $119,472, according to Point2’s study released Thursday.
The Canadian real estate listing portal says Greater Sudbury also has the second-lowest closing costs ($1,888) after Edmonton, AB ($1,873).
The report looks at 50 of the most populous cities in Canada and analyzes data pertaining to two categories: upfront costs and annual recurring costs.
Upfront costs include closing costs and a 20 per cent down payment based on local benchmark home prices, while annual recurring costs consist of mortgage payments (assuming the conventional, five-year, fixed-rate mortgage with a 5.86 per cent interest rate and a 25-year amortization period), average property tax, and homeowners’ insurance.
Saguenay, Quebec, topped the list with an average cost of $74,342 during the first year of homeownership, followed by Trois-Rivières, QC ($79,517) and Québec City, QC ($84,370).
Eight of the 15 most affordable cities during the first year of homeownership are in Quebec.
The cost of the first year of homeownership stayed below $100,000 in only seven of Canada’s most populous cities: Québec’s Saguenay, Trois-Rivières, Québec City and Lévis; Regina, SK, St. John’s, NL, and Winnipeg, MB.
“This is largely due to somewhat manageable down payments based on local benchmark home prices, as well as annual mortgage payments of less than $20,000 — which are considerably lower than the likes of Vancouver (almost $71,000) or Vaughan (nearly $79,000),” reads the report.
Meanwhile, Markham, Ont. had the most expensive average cost during the first year of homeownership at $383,469, followed by Oakville, Ont. ($378,122), Vaughan, Ont. ($369,051) and Vancouver, BC ($331,638).
The report also looked at the number of years needed to save up for the upfront costs of buying a home, and Greater Sudbury required eight years of saving- marking the only Ontario city with fewer than 10 years.
Edmonton came in first place on the list with only five years needed to save upfront costs, while Kingston, ON, Montreal, QC and London, ON all ranked at the bottom and required at least 10 years to save.