We do see a substantial percentage of single people purchasing homes today, even in the face of high prices. In 2016, Census data show that a substantial percentage of purchasers in Canada were single. In 2019, Statistics Canada published a study that examined the prevalence and characteristics of people living alone in our country. From 1981 to 2016, the number of solo dwellers increased from 1.7 million to 4 million. The report also predicted that one-person households would likely increase over the next few years, especially as our population ages.

How is that still possible, and how, oh how do they manage it? Today’s savvy buyers understand the nuances of planning for this major life step.

Importance of down payment

First and foremost, buyers have to consider the down payment, which is always a challenge. Of course, the bigger the down payment, the more affordable the mortgage payments. Nowadays, families (especially parents and grandparents) are helping with that. Even when that is not the case, we see young hopefuls saving money like never before, the way we Baby Boomers did decades ago. They forego luxuries such as movies, concerts and eating out to deposit more into their savings. They are careful to keep good credit scores, which inevitably help in obtaining mortgages. There are online mortgage qualifier tools that can help them figure out what they can afford – plus, getting pre-approved for a mortgage is a great idea.

Today’s single buyers also know how to research government programs for first-time buyers and take advantage of everything for which they qualify. This includes using some of their RRSPs toward the down payment. There is also the First Home Savings Account, which enables first-time buyers to save toward building or buying tax free (up to certain limits). Visit cmhc-schl.gc.ca for more information.

Importance of timing

Of course, timing plays a part – and frankly, the Bank of Canada cutting interest rates by another 25 points on Jan. 29 is another feather in the first-time buyer’s cap. Plus, inflation remains at two per cent, which is great news for all Canadians. Imagine how we felt decades ago when interest rates shot up to double-digit numbers. Today’s homebuyers benefit greatly from this step.

Single buyers also choose locations carefully, perhaps selecting an up-and-coming neighbourhood over an already popular one where infrastructure and amenities are already in place. They may also consider smaller homes or condominiums than they would ideally like, for affordability purposes. In fact, today’s compact homes and condo suites live larger than ever before because of efficient designs. And often these are condominiums close enough to public transit that the homeowners do not require vehicle ownership. That saves many thousands of dollars each year that can go toward paying down the mortgage.

Some single buyers have dreamed of owning a home since childhood and do everything they can to make that happen. Some even work more than one job to earn extra money. These forward-thinkers opt to pursue careers that will enable homeownership at some point, and they enter the market as soon as they can to begin earning equity. However they package their approach, singles purchasing new homes are an inspiration to us all.