5 Ways to Bring Home Ownership Within Reach

Buying your first home is an exciting milestone for many Canadians—one that marks the end of renting and the beginning of owning a space to truly call your own. But in today’s climate of rising housing prices and economic uncertainty, many young people are finding it harder to see that dream as realistic. While it may feel out of reach, especially for those early in their careers, careful financial planning can help turn that dream into a real possibility.

Here are five practical steps to move closer to owning your first home:

1) Understand Your Credit Score

A strong credit score is one of the most valuable tools in your journey to homeownership. The good news? It doesn’t cost anything to build one—just consistency. Paying your rent, utility bills, and credit cards on time goes a long way toward improving your score. In Canada, scores range from 300 to 900, with 660 to 724 considered “good.” The higher your score, the better your chances of being approved for a mortgage.

Before you dive into the home-buying process, review your credit report to see where you stand and what you might need to work on. You can order a copy from Canada’s two major credit bureaus: Equifax or TransUnion.

2) Tackle Your Debt First

Debt can be a roadblock to saving for a down payment. If you’re still paying off student loans or credit cards, consider focusing on reducing your debt load. This frees up your finances and strengthens your mortgage application.

And don’t overlook the Home Buyers’ Plan (HBP). If you’ve been contributing to an RRSP, you may be able to withdraw up to $35,000 tax-free to use toward your first home. You’ll have 15 years to repay it. A conversation with your local credit union advisor can help you decide if this strategy is a good fit for you.

3) Make Saving a Habit

Saving may feel overwhelming—especially with rising living costs—but starting small can still lead to big results. Even setting aside $10 per paycheck can make a difference over time. Consider putting your savings into a high-interest savings account to grow your money faster.

Small, consistent contributions help build the habit. And as your income grows or expenses decrease, you can increase those savings. Ask your credit union about accounts that offer competitive rates and support your financial goals.

4) Be Flexible with Location

The cost of a home can vary significantly depending on where you buy. If your dream neighbourhood is beyond your budget, try expanding your search radius. For instance, instead of downtown Toronto, consider nearby cities like Hamilton, Kitchener, or Barrie where you might get more for your money.

Still set on city life? Look into pre-construction developments in emerging neighbourhoods—they can offer lower prices and a chance to build equity over time while staying close to the urban action.

5) Don’t Overlook Fixer-Uppers

If move-in-ready homes are out of reach, consider looking at properties that need a little work. A fixer-upper might not have the instant curb appeal, but with some repairs and elbow grease, it can become the perfect place—without breaking your budget.

Doing your homework ahead of time and getting professional inspections can help you avoid unexpected surprises. And the bonus? These homes often have less competition from other buyers.

Extra Tips to Pay Off Your Home Faster

Rent Out a Portion of Your Space

Rather than diving into big purchases like a new vehicle or kitchen renovation, consider holding off and using that money to make extra payments on your mortgage. Renting out a basement suite or spare room can help cover monthly costs, build equity faster, and keep your finances on track.

Start a Side Hustle

A part-time gig or freelance work can provide extra cash for emergency home expenses or allow you to make lump-sum mortgage payments. Whether you’re delivering food, offering pet care, or driving for a ride-share service, that added income can give your budget more breathing room.

From food to housing, inflation is reshaping the financial landscape for Canadians. ABCU offers personalized support, flexible mortgage options, and valuable financial advice that can help first-time buyers feel confident and prepared.

Contact our team today and start planning for the home you deserve. general@abcu.ca  1-888-929-7511