Creative Solutions for First-Time Buyers in High-Cost Markets
Buying your first home in a high-cost market can feel like an impossible dream—especially when rents are rising and real estate prices continue to climb. But the path from renting to owning doesn’t have to follow a traditional route. With the right strategy and a bit of creativity, homeownership can become a reality, even in today’s challenging market.
Overcoming the Down Payment Hurdle
For many first-time buyers, the biggest obstacle is saving for a down payment. While it can seem daunting, there are practical strategies that can help:
- Automated savings plans
- First-time homebuyer incentives
- Using RRSPs for a Home Buyers’ Plan
- Gifts from family members
Each of these can play a significant role in getting buyers closer to their goal. I’ve worked with many clients who’ve used a combination of these tools—and family support—to get into their first home sooner than expected.
Family Support: More Important Than Ever
Compared to 20 years ago, today’s buyers face significantly greater challenges in qualifying for and affording a home. Many parents and grandparents recognize this and are stepping up to help the next generation in a variety of meaningful ways.
Temporary Co-Signing or Co-Ownership
A common approach is having a parent or grandparent join the mortgage to help a child qualify. This involvement doesn’t have to be permanent—once the buyer has paid down the mortgage or built sufficient equity, they may be able to refinance and remove the family member from the loan or buy them out. It’s a flexible solution that offers immediate support with a clear exit strategy and all while still protecting that family members investment by being on title.
Gifting Equity Through a Private Family Sale
Another powerful option is when a parent or grandparent sells their home to a child or grandchild at fair market value, but gifts back some of the equity as a down payment. This not only eliminates the need for the buyer to save the entire amount themselves, but it also keeps the property and its value within the family. Structured properly, it can be a highly effective way to transfer generational wealth and provide financial stability.
Alternative Paths to Homeownership
Creative solutions go beyond just family support. Some other successful strategies I’ve helped clients with include:
- Rent-to-own agreements – These allow buyers to live in a home while building toward ownership, with a portion of rent going toward the purchase price.
- Joint ownership with family or friends – Pooling resources can make buying possible sooner, especially in high-priced markets. Multi-generational living is becoming more and more popular.
- Starter properties – Purchasing a smaller, more affordable home (even as a rental property) to get into the market now and move up later.
Each of these approaches can be tailored to fit your financial circumstances and long-term goals.
Real-Life Success Stories
I’ve had the privilege of working with clients who’ve taken these non-traditional paths to homeownership. From a couple who purchased a condo to rent out while they saved for their forever home, to a young professional who bought a duplex with her parents to create multi-generational housing—there is no one-size-fits-all solution. These stories prove that with the right support and planning, homeownership is achievable.
Let’s Explore What’s Possible
The journey to owning your first home might look different today—but it’s still within reach. Whether you’re exploring your own options or considering how to support a family member, I’m here to help you navigate the process with clarity and confidence.
By Hayley White – MMG Mortgages
Mortgage Agent | Real Estate Financing
Let’s connect and create a plan that works for you.
250-808-3618
