Thompson-Okanagan cities among most affordable for first-time home buyers
While housing prices skyrocketed in Kamloops and the Okanagan last year, a new national survey shows the region’s major cities are quite affordable when it comes to the cost of getting into a home for the first time.
Point2, an international real estate search portal, analyzed the cost of buying a home in Canada’s 50 largest cities but also provided iNFOnews.ca with data on 11 B.C. cities, many of which were not large enough to include in the national survey.
“The first year of homeownership, in particular, can be daunting, given the down payment, closing costs, first mortgage payments, homeowners’ insurance, and property taxes — all new to first-time homebuyers,” the report says.
Kelowna ranks 37th out of the 50 largest cities in the country when it comes to the cost of getting into a home at $166,660. That includes a 20% down payment of $144,576 and closing costs of $15,843.
In the first year, the new Kelowna homeowner will also be faced with mortgage costs of $45,716, insurance of $924 and property taxes of $3,262 for a total first year cost of $216,563.
That first year total cost drops dramatically for Penticton buyers to $158,242. For Kamloops it totals $160,389 and in Vernon its $175,165.
Even so, the Kelowna costs pale in comparison to the least affordable city in Canada. The first-year home ownership costs in Richmond Hill, Ontario are just over $400,000.
Quebec has nine of the 15 most affordable larger cities in Canada, including Saguenay, the cheapest, at a total first year cost of only $74,342.
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In terms of the B.C. cities list, Vancouver is the most expensive with a first year total cost of $331,638.
As noted above, Penticton is the second most affordable at $158,242 but is a far cry from the number one city. That’s Prince George at $103,162.
So, what does this mean for people saving to buy a home and make the first year payments?
Point2 estimated that, if a renter was able to put 20% of their after-tax income aside for a new home, it would take a Kelowna resident 12 years to save enough to cover off the upfront costs and 16 years to have enough money set aside for their first year of home ownership.
While Penticton and the other cities in the region fare better, it would still take a Penticton or Kamloops renter nine years to save up for the upfront costs to get into their own home.
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