Friday, February 7, 2025

In my 35 years of working with Canadian families, I’ve seen many people wait to buy their first home, thinking they’ll jump in when the timing is right. But here’s the thing—waiting often comes with a much bigger price than they realize. If you’re thinking, “I’ll buy when I’m ready,” consider this: in many markets, including right here in Ottawa, real estate has consistently doubled in value every 10 to 12 years. Waiting even 10 years can mean paying double for the same home—and that’s a cost many people never recover from.

The Price of a Lost Decade

Let’s take a simple example. Imagine you’re in your 20s, considering buying a $500,000 home. But you decide to wait until your 30s, thinking you’ll be in a better financial position. By then, that same home could be worth $1 million. Instead of needing a $25,000 down payment (5% of $500,000), you now need $50,000, plus you’re competing in a much higher price bracket.

Meanwhile, someone who bought at 25 is sitting on hundreds of thousands of dollars in equity. They’ve paid down their mortgage and watched their property value climb, giving them financial flexibility to upgrade, invest in more real estate, or refinance for other goals. They’re building wealth without having to lift a finger—just by letting time do its thing.

Start Small, Build Big

I’ve heard it many times: “I’ll wait until I can afford my dream home.” But the truth is, starting small doesn’t mean staying small. Many people we’ve worked with began with modest townhomes or condos that weren’t in their ideal location but served as a stepping stone to something bigger.

I think about one of our young clients who bought a small townhome at 23 in an area they didn’t love. Fast forward 10 years, and that townhome became a rental property, generating additional income while they upgraded to their dream home closer to the city. They didn’t wait for perfection—they started where they could and let growth happen.

Creative family support is another key. More parents and grandparents are stepping in to help young people buy their first homes by co-signing mortgages, gifting down payments, or offering loans. In fact, 25% of first-time buyers in Canada are getting family assistance. But here’s the catch: family members are much more likely to help when they see that you’re already making wise financial decisions with the money you have.

The Power of Government Programs

If affordability feels like a barrier, you’re not alone. But Canada offers several programs designed to help first-time buyers get into the market.

Here are a few options:

– First Home Savings Account (FHSA): Contribute up to $8,000 annually, to a maximum of $40,000, and enjoy tax-free withdrawals when you buy your first home.

– RRSP Home Buyers’ Plan: Withdraw up to $35,000 tax-free ($70,000 if purchasing with a partner) and repay it gradually over 15 years.

– Land Transfer Tax Rebates: Save up to $4,000 as a first-time buyer in Ontario.

– Municipal Grants and Loans: Some smaller communities offer cash incentives or low-interest loans to help first-time buyers.

These programs can reduce the financial pressure and help you take action sooner. The key is to know which ones you qualify for and how to take advantage of them.

Timing the Market vs. Timing Your Life

I know many people wait for the “perfect time” to buy, hoping for prices to drop or interest rates to improve. But the reality is, it’s more important to time your life than to time the market.

Even if prices fluctuate in the short term, the long-term trend of real estate is upward. The longer you wait, the more you risk missing out on that growth. Every year you’re in the market is another year your money works for you.

Take Action with a Clear Plan

If you’re unsure where to begin, start with a 15-minute Clarity Call. It’s a no-pressure conversation where we help you create a plan, explore down payment options, and understand the programs available to you.

Imagine yourself 10 years from now. What would you rather have—a home that has doubled in value or 10 years of missed opportunity?

How We Can Help You Build Wealth Wisely

The Dekker Team is here to position you for long-term success through personalized advice and proven strategies. Whether you’re buying your first home, upgrading, or investing, we’ve been walking alongside Canadian families for over 35 years, and we’re ready to do the same for you.

Reach out today for a Clarity Call. 613-608-6536 or together@dekkerteam.com. Together, we’ve got this.