Family helped this solo buyer get his first condo, which has dropped $20,000 in value | Canada Voices

Bradley bought his one-bedroom Mississauga condo near the peak of the market in early 2023, when prices in the Greater Toronto Area were at record highs.

The 30-year-old engineer, who earns $103,000 a year, paid $525,000 for the 680-square-foot unit, which came with one parking spot.

Although he doesn’t check its value any more, he estimates his condo is now worth around $20,000 less than what he paid. He said he was aware of the risk, but he sees the purchase as a long-term decision, not a short-term investment.

“I bought it to live in,” he said.

That long-term outlook wouldn’t be possible without his family’s help. Bradley was able to put down a down payment of 20 per cent – $110,000 – half of which came from his parents as a gift. Without that, he could not have entered the market at the time.

His parents helped in other ways: they allowed him to live at home while he was saving and then acted as guarantors on the mortgage. During that time, Bradley contributed to household expenses including internet bills, groceries, water and heating.

Just as important as family support was how Bradley structured his own finances in the years leading up to the purchase. He graduated with two university degrees – and roughly $40,000 in student debt.

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After covering his expenses, Bradley split the remainder of his take-home pay in two. He directed the first half toward aggressively paying down his Ontario Student Assistance Program loans and made the final payment just weeks before buying the condo, a move he said was deliberate.

Banks, he learned early on, care deeply about liabilities and factor existing debts into how much buyers can qualify for under federal mortgage rules.

“I knew clearing that debt would improve how much I could borrow,” he said.

The second half, earmarked for the future down payment, went into his tax-free savings account (TFSA). He invested primarily in the stocks of big Canadian banks, Enbridge ENB-T and Dollarama DOL-T, along with exchange-traded funds.

While the strongest gains came during the pandemic era, Bradley credits consistency rather than investing skill. Over seven years, his contributions added up.

When it was time to buy, he emptied his TFSA, sold old laptops and pulled together every dollar he could. “I was flipping couch cushions for spare change,” he joked.

Bradley amortized his mortgage over 30 years and secured a three-year fixed-rate mortgage at 4.9 per cent with one of the big banks. He renewed for 3.8 per cent with the same institution this year, and his monthly mortgage payment is now around $2,300.

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Predictability mattered more to him than chasing the lowest possible rate, which was one of the reasons he decided to take out a fixed-rate mortgage. “I wanted to know exactly what was going out every month,” he said.

He deliberately avoided new builds, opting instead for a 2008 condo he felt offered better value and fewer unknowns. The den was essential because it allowed Bradley to work from home comfortably, and the location in Mississauga struck a balance between his friends in Toronto and his family in a nearby suburb.

During the buying process, he discovered purchasing a home comes with costs beyond the purchase price. Legal fees were one example, which set him back about $1,000.

After buying, Bradley rented the condo out for over a year and a half, charging $2,300 a month. The rent covered most of his mortgage, but not the condo fees or property taxes, and allowed him to rebuild savings before moving in.

Once he moved in last year, Bradley redid the kitchen, replaced flooring throughout most of the condo and repainted the unit. The renovations cost about $15,000, and getting contractor quotes came with a shock.

“It adds up quickly,” he said.

Bradley doesn’t expect to move for at least another decade. The buying process was long, stressful and expensive, and he says he wouldn’t go through it again unless a major life change prompted it.

The costs

• Purchase price: $525,000
• Down payment: $110,000 (20+ per cent)

Closing costs

• Legal fees: $1,000
• Land transfer tax: $3,000
• Renovations and furniture: $15,000

Monthly costs

• Mortgage: Approximately $2,300
• Home insurance: $40
• Utilities and condo fees: $700

Bradley’s advice: Homeownership isn’t about a single smart move, but a series of disciplined ones over time. Save early. Pay down debt aggressively. Be patient.

Some details may be changed to protect the privacy of the people profiled. Are you a first-time homeowner who would like to share their story? Send us an e-mail.