Regina has the lowest full cost for the first year of homeownership among the prairies, according to a recent study.
The study, published by Point 2 Homes on Feb. 27, set out to find the price of being a homeowner in Canada, and highlight Canadian cities where the first year comes cheaper.
Of the prairie cities included in the study, the Queen City’s cost for the first year of ownership was the lowest at $88,704, compared to Winnipeg, Man. at $95,125, Edmonton, Alta. at $100,078, and Saskatoon at $102,992.
Alternatively, the cities with the most expensive first year of homeownership were all in Ontario and British Columbia, with the most expensive being Richmond Hill, Ont. at $400,733. Vancouver, B.C. was listed at $331,638 for the first year.
For the study, researchers took the 50 most populous cities in Canada and analyzed data on upfront costs and annual recurring costs.
The upfront costs include the down payment plus closing costs, which may include land or property transfer taxes and home inspection fees, according to the study.
The annual expenses include property taxes, homeowners’ insurance, and the mortgage.
Regina’s average upfront cost was listed at an average of $65,124, with an average annual cost of $23,580 for the total of at $88,704, compared to Saskatoon which had an average upfront cost of $76,036 and an average annual cost of $26,956 for the total of $102,992.
The study also looked at years required to save for those upfront costs. To do that, they looked at annual renter income with 20 per cent of income set aside.
For Regina, the study listed six years to cover upfront costs, with the annual renter income at $57,301, and $11,460 set aside.
The study also looked at years to cover the full cost for the first year of home ownership, including annual and recurring costs, such as the monthly mortgage payments, homeowners’ insurance, and property tax.
According to the study, it would take an average of eight years in Regina to cover the full cost of the first full year of homeownership.
More details from the study can be found here.
