The Dream That Felt Impossible
When Mark and I started dating in 2019, we joked that we'd need to win the lottery to ever own a home in Toronto. Fast forward to 2024, and somehow, we're standing in our own 650 square foot condo in Liberty Village, keys in hand. Spoiler: We didn't win the lottery, but we did sacrifice our social lives for about 18 months.
Our Strategy: The FHSA Game-Changer
The First Home Savings Account was announced in Budget 2022, and we immediately opened accounts. Being able to save $8,000 each per year tax-free, then withdraw it tax-free for a home purchase? That was the catalyst we needed.
By the time we were ready to buy, we had $32,000 saved between us in our FHSAs, plus another $45,000 we'd scraped together in a regular savings account. We also—and I'm not ashamed to admit this—borrowed $10,000 from Mark's parents to cover the closing costs (Land Transfer Tax in Toronto is brutal).
The Compromises We Made
Our wishlist started ambitious: 2 bedrooms, parking, a balcony, in-suite laundry, walking distance to the subway. Reality check: We bought a 1-bedroom plus "den" (which is really just a nook for a desk), no parking (we sold our car), a Juliet balcony, shared laundry on our floor, and a 12-minute walk to Exhibition GO.
But here's the thing—we're happy. The location is incredible for restaurants and the waterfront. Remote work means we don't need to commute daily. And that parking spot we gave up? It would have added $75,000 to the purchase price. We cycle everywhere now.
Advice for Others
Start the FHSA now. Even if you're not sure about buying, the tax savings alone are worth it. You have 15 years to use it, and you can transfer it to an RRSP if homeownership doesn't work out.
Be flexible on your must-haves. Write two lists: what you need and what you want. Be honest about the difference. We needed a roof. We wanted a gym in the building. We chose the roof.
The math has to work. We set a strict budget where housing costs (mortgage, condo fees, taxes, insurance) wouldn't exceed 35% of our gross income. We stuck to it, even when realtors showed us "stretch" properties that made us drool.
Toronto is hard. We're not pretending otherwise. But it's not impossible.