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Toronto Sun
4 days ago
- Business
- Toronto Sun
Average age of first-time homebuyer now at 40
Everything in general is just more expensive and people are delaying their home buying plans. Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page. There's a shift happening and people aren't so house-obsessed anymore This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The average age of first-time homebuyers in Ontario last year was 40, up from 38 six years ago, and 34 a decade earlier, according to Teranet, the province's land registry office. 'Everything in general is just more expensive, and people are delaying their home-buying plans,' said Victor Tran, a mortgage and real estate expert with RATESDOTCA. Tran, also a mortgage broker and real estate agent, says the rising age of first-time buyers has been apparent for years. He has clients who have been saving money for upwards of two decades to afford down payments that are increasingly out of reach. 'So they rely on parental assistance,' Tran continued. 'Their parents are aging, in their late 60s or early 70s, retired and planning for nursing homes or long-term care homes of some sort.' Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Indeed, the wealth transfer is in full swing, with early inheritances becoming commonplace, but receiving it by 40 might not be soon enough. Buying a home at that age with a 30-year amortization to lower monthly mortgage payments ultimately means the homeowner pays more interest than principal, and that could eat into their retirement years. Granted, they could also downsize during the intervening period, so there are options, says Tran. However, it brings up an interesting question, he added. ''A lot of people ask, 'Should I keep renting into my 40s, or should I dump the majority of money I've been saving up for the past 15, 20 years into this home?' There's a good amount of people I've been talking to that don't want to bother at all and are okay with just renting for the rest of their lives because it gives them more flexibility,' Tran said. This advertisement has not loaded yet, but your article continues below. It's instructive to note that 40 is the average age of first-time homebuyers in Ontario, says Ron Butler, owner of Butler Mortgage, meaning that some of them could be as old as 45 or 50. Butler says buying a home at a later age makes sense if the buyer has received a large inheritance, otherwise it's a toss-up. 'The really interesting thing is the elimination of first-time buyers under the age of 30 — they're unable to event attempt to buy a home,' Butler said. 'They're absent. They don't exist, at least not in Ontario. 'When I started in the business 30 years ago, they were extremely common.' When Butler's career began around three decades ago, a 27-year-old could easily become a homeowner, especially with mortgage insurance courtesy of the Canada Mortgage and Housing Corporation. Today, that 45-year-old buyer needs CMHC insurance while the 27-year-old is likely still living with their parents, never mind even able to afford rent in the province's largest cities. With nary an indication that home prices will come back down to earth, Tran anticipates Canadians will trade in their preoccupation with homeownership for what he calls 'the European mentality.' 'People I've talked to are okay with renting and not being tied to a house, so there's a shift happening — at least in the networks I'm involved with — and people aren't so house-obsessed anymore,' Tran said. 'Rather, they can focus on building their relationships and families, raise their children and, most importantly, save for retirement instead of just being house-rich but cash-poor. Crime Sunshine Girls Sunshine Girls Toronto Raptors Toronto Maple Leafs
Yahoo
27-05-2025
- Business
- Yahoo
Posthaste: Burning your mortgage is going the way of rotary phones and station wagons
The days of burning your mortgage as a rite of passage into your golden years appear to be slipping into the past along with rotary phones and station wagons. A new survey by real estate company Royal LePage suggests that millennials and gen Z are not the only generations struggling with housing affordability in Canada — seniors are carrying the burden well into retirement. Almost a third of Canadians who are planning to retire in the next two years will continue to make mortgage payments on their primary residence into retirement, the survey said. That's twice as many seniors carrying mortgage debt as a decade ago, and in 1999 the share was just eight per cent. Home prices in Canada soared to $827,100 in 2023 from $120,200 in 1990, according to the Canadian Real Estate Association, and these gains have been a 'double-edged sword' for older Canadians, Royal LePage chief executive Phil Soper said. 'On one hand, it has delivered unprecedented financial gains. On the other, this generation is far more likely to have carried mortgage balances that would have been unimaginable to their parents or grandparents,' he said. It's a trend that will likely continue as first-time homebuyers increasingly enter the housing market later in life. A Royal LePage study in 2023 said 43 per cent of first-time homebuyers were aged 35 and older, up from 33 per cent just two years earlier. In the pricey Ontario real estate market, the median age of a first-time homebuyer hit 40 in 2024, up from 36 a decade earlier, which Teranet said is 'a testament to the likely effects of the affordability challenges in the Ontario housing market.' Yet Royal LePage also said that a surprising number of older Canadians are not willing to downsize in retirement — nearly half, 47 per cent. Seniors in Manitoba and Saskatchewan, according to Royal LePage brokers, are more inclined to downsize, while more retirees in Quebec and Ontario opt to stay in their own homes. 'The benefits of entering retirement as a homeowner with a paid-off mortgage are clear: more disposable income, insulation from interest rate changes, and even the emotional security that comes from knowing you'll always have a place to live,' Soper said. 'In the era of rotary phones and station wagons, burning your mortgage was the economic finish line. Today's retiree reality is much more nuanced.' to get Posthaste delivered straight to your manufacturing isn't the American dream. President Donald Trump has made it clear he wants to bring factory jobs back to the United States, but this chart from TD Economics suggests the American people might be a bit more ambivalent. Most agree that there should be more people working in domestic manufacturing, but far fewer think it should be them. Trump might have a harder time than he thought convincing Americans that they need to pay higher prices to win back factory jobs. Today's Data: United States durable goods orders, Conference Board consumer confidence, S&P CoreLogic Case-Shiller home price index Earnings: Bank of Nova Scotia, Autozone Inc. How Trump's 'big beautiful bill' could become a big headache for corporate Canada and investors Many investors remain unaware of the scale of the unfolding bond crisis What you need to know about Canadian Tire, the retail giant that bought Hudson's Bay brands Canadian household wealth surged to a new collective high of $17.49 trillion at the end of 2024, and on average Canadians saw their net worth climb 5.77 per cent to reach $1,026,205, fuelled by strong financial asset gains. The Financial Post's Serah Louis breaks down the state of household wealth in Canada — and looks at the uncertainty that lies ahead. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ 'The fear is real,' says TD, predicting 100,000 jobs will be lost in looming recession Canada home prices are heading into correction territory
