First time homebuyers are getting younger

By Jacquelyn Francis

For those who still equate mortgages with the “A” word (adulthood)—it’s time to grow up. Low interest rates and fun filled condominiums have turned owning your own pad into child's play as young buyers jump into the market.

“I wanted to invest in something more concrete than saving for nothing,” says 25-year-old Samantha Trottier, a new owner with her boyfriend. “It was something that we both wanted to do and it was a good deal and I have been saving for it.”

Although Trottier was casually looking at places, the 1,200 square foot stacked townhome in Toronto’s West End came as a surprise.

“This just kind of came along. I had heard about it from two friends who live in the area, about six months ago. I looked into it but wasn’t sure we were ready. But then I drove by and it felt right,” she says.

As a full-time sales coordinator, Trottier needs a car for work, so the combination of auto payments and a mortgage would have made owning solo impossible. She says she’s lucky to share a common perspective on owning with her partner.

“My boyfriend thinks the same as me, he thinks if we have the down payment then we should do it.”

This doesn’t surprise Charles Lambert, managing director of residential mortgages for Scotiabank, who says a recent company consumer survey found that in the 24 to 34-year-old age group, 40 per cent reported having a mortgage on a home.

“We have historically low interest rates that make it more affordable to own than rent," says Lambert. "It’s an attractive time to get in earlier.”

For 25-year-old Jennifer Pardinas, it’s only a few more weeks until she and her cousin take possession of their new condominium. The duo bought a two-bedroom, 815 square foot lakeshore condominium from blueprints.

“It was in the area that we loved and we looked around at the other developments in that area and that was the one we liked the most when we compared the maintenance fees, parking, and the builder,” says Pardinas who discusses interest rate options and the Homebuyer’s Plan the way some might a clothing purchase.

“I’m so glad I did it. At this point I'm not ready to be a real 'homeowner'. I want to be in the downtown scene,” says Pardinas, illustrating the subtle difference between single—family dwellings and the relative freedom of a condo.

According to Linda Mitchell, vice president of sales and marketing for Monarch’s high-rise developments, buying a condominium and doing so young has become a lifestyle choice.

“People are busy, they’re enjoying doing what they do, they have social agendas,” explains Mitchell citing an increasing number of attractive amenities like billiards, movie, and spa-like spaces in new developments.

“This is something they can get in their home that they would never get in a rental accommodation.” Katherine Valeriano, 27, started to think of owning the moment she began working and investing in RRSPs. Although she currently lives with her father, he will be retiring and moving in with another sibling next year, so for Valeriano the time to buy was perfect.

“I was at a point where I wanted to be on my own. It wasn’t just living on my own, I wanted to be separate from my parents,” she says. The one-bedroom plus den condominium she and her boyfriend bought in Toronto’s King Street West area. The pair both dipped into their RRSPs for a down payment.

“It still feels like we bought a place yesterday,” says Valeriano. “It’s a great feeling. Between me paying rent and this, it won’t be so much of a difference. The big difference is that this is my own.”