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Between the changes in mortgage rules and skyrocketing house prices, many millennials are wondering whether the Canadian dream of home ownership is simply out of reach for their generation. I won’t sugar-coat the facts – the truth is, it is more challenging than ever. About ten years ago, I bought my first house in Barrie for $185,000; today, that same house has nearly doubled in value. Although these are daunting statistics, all hope is not lost.

Here are eight tips to help millennials make the dream of homeownership a reality.

Start small

It has been said, “do not despise these small beginnings.” This is sage advice, particularly since the new mortgage “stress test” virtually guarantees you will qualify for a smaller mortgage amount than you would have previously. Your journey to homeownership is going to be great a story to inspire (or annoy) your children one day, but this is just the beginning of that story, so start small. To do this, you will need to differentiate between your needs and your wants.  How many beds and baths would meet your minimum requirements? Do you require parking and if so, for how many vehicles? Are you a pet owner? Do you have the time or interest in maintaining a lawn and garden? Do you like to entertain or is your home just a place to rest your head? Purchasing a condo or townhouse can be very rewarding and lucrative, and may even be a better solution for your lifestyle than a house which can demand a lot of time and money in maintenance and upkeep. If you do need more space or are a pet owner and require a yard, consider a small home, semi-detached, or linked. If you are considering one of these alternatives, remember to factor in applicable condo or townhouse and parking fees into your calculations when doing the math. In any case, your first home will likely not look like something out of House & Home magazine. You’ll have it one day, but for now, the granite counters and a chef’s kitchen can go in the “nice to have” category.

Look for a deal

There are still deals to be had out there in the form of fixer-uppers or powers of sale. Many people are hesitant about buying a house that needs work, particularly if they’re coming from a home that’s been updated to the nines.  However, as a budding first-time homeowner, you have the advantage of having both the time and energy to tackle a space that needs some tender loving care.  If you or your family members are handy, you can really take advantage of purchasing a home that needs updating by doing the work yourself and building equity in the increased value after the renovations are complete, or flipping the house for a profit.  Consult with a Realtor® to find out how you can get the most bang for your buck.

Become a landlord

Being a landlord may not be your idea of living the dream, but purchasing a property with income potential can alleviate the financial strain of home ownership so that you’re not house-poor. Make sure you can manage the mortgage and carrying costs of your home on your own so that any income gained from a tenant or roommate goes straight to your bottom line. Before you embark on this journey, get informed about your rights, obligations, best practices and potential pitfalls by checking reading more at Ontariolandlords.org. Be sure to connect with a mortgage specialist to find out how the mortgage rules will impact you.

Save

I know – you read that and felt a lecture coming on. When I was your age, I used to walk 10 kilometres to get to work…in the snow…barefoot…just to save a buck. No one is saying that your days of caramel macchiatos and sushi nights are over, but living lean does need to make a comeback if you want to realize your dream of home ownership. The good news is…there’s an app for that. There are apps that can help you get a handle on your spending, access your bank accounts (and even credit scores), pay bills, and set and track goals.  Check out the Mint or YNAB (You Need A Budget) apps for starters.

Government incentive programs

Did you know there are several government incentive programs designed to alleviate some of the financial burdens of buying your first home? They may be your ticket to homeownership sooner:

Ontario Land Transfer Tax Rebate

Home Buyer’s Plan

First-Time Homebuyer’s Tax Credit

GST/HST New Housing Rebate

Energy Efficient Housing

Get a savvy mortgage broker

I always recommend getting pre-approved for a mortgage so you can set some goals and know what your budget will be when you eventually go hunting for your first home. Your mortgage broker may have some great tips and tricks to offer that will save you money and get your foot in the door.

Mom & dad

It’s never Plan A to go to mom and dad for help, but in this market, it can provide a much-needed leg up. If your parents or family members are willing and able to offer you a loan for the downpayment on more flexible terms, that can considerably speed up your timeline for home ownership; just ensure you can comfortably carry all the expenses associated with owning a home along with this additional debt.  To ensure you’re on good terms with your family for the long haul, make sure you have a clearly defined, written contract for the terms of repayment.

Views from the 7 – move north

Your dollar goes much further in the 705 than it does in the 416, 647, or 905 area codes, and there are fantastic communities to live in. The provincial government has relayed that transportation is a priority so accessibility to and from Toronto should get easier moving forward.

It may take some time to achieve your goal of home ownership, but one of the benefits of being a millennial is that you’re young so you’ve got time on your side. Turn that into a reality by creating a plan. Start yours today.

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