February 23


Opinion: Breaking Down Barriers to Homeownership: How These Three Strategies Can Help More Canadians Afford a Home (Advanced)

By Paul J Rocha

February 23, 2023

Home » Blog » First-Time Homebuyers » Opinion: Breaking Down Barriers to Homeownership: How These Three Strategies Can Help More Canadians Afford a Home (Advanced)

Key Takeaways:

  • High housing costs in Canada prevent many from homeownership, with average prices at $612,204 and up to $1,000,000 in Toronto.
  • Innovative approaches can improve affordability,
  • 40-year amortization can help younger, lower-income Canadians become homeowners.
  • Higher investor down payments can level the playing field for first-time buyers.
  • Tax incentives for mortgage interest can reduce the cost of homeownership and incentivize first-time buyers.

  For many Canadians, owning a home is a lifelong dream. However, as housing prices continue to rise and the cost of living increases, it has become increasingly difficult for first-time homebuyers to enter the real estate market. In 2021, the average house price in Canada was $612,204, with prices hovering around $1,000,000 in the Greater Toronto Area. This high cost of housing is a significant barrier to homeownership for many Canadians. In fact, the home ownership rate in Canada was 66.5% in 2021, down 2.5% from 2011. In order to address this challenge, we need to explore innovative approaches to improving housing affordability and breaking down the barriers to homeownership. Here, we will examine three key strategies that can help more Canadians afford a home.

Map of the home ownership rate across Canada

Offering first-time homebuyers a 40-Year Amortization:

  One of the primary challenges facing first-time homebuyers is the ability to qualify for a mortgage. With housing prices on the rise, it can be difficult for many Canadians to save up for a large down payment and meet the income requirements for a mortgage. By offering a 40-year amortization option for first-time homebuyers, we can provide more affordable mortgage payments that better align with their income and budget. This would help to make homeownership more accessible for younger Canadians who are just starting out in their careers and may not yet have the same earning potential as more established homeowners. 

Average Home Price Across the GTA - January 2023
Map of the Greater Toronto Area and the Corresponding Average Home Price

Increasing Real Estate Investor Down Payment       Requirements for Each Subsequent Home:

  Another challenge that is exacerbating the housing affordability crisis in Canada is the influx of real estate investors who are buying up properties and driving up prices. In order to address this issue, we need to implement policies that discourage excessive real estate speculation and encourage more responsible investment practices. One such policy could be to increase the down payment requirements for real estate investors for each subsequent property they purchase. This would help to level the playing field for first-time homebuyers and reduce competition from investors who may be less interested in using properties for primary residences and more interested in profiting from rising home values.

Offering First-Time Homebuyers a Tax Incentive for Interest Paid:

 Finally, we need to explore ways to incentivize homeownership and encourage more Canadians to take the leap into the real estate market. One way to do this is by offering a tax incentive for first-time homebuyers on the interest they pay on their mortgages. This would help to reduce the overall cost of homeownership for Canadians, making it more affordable for those who may be struggling to meet the financial demands of homeownership. Additionally, it would provide a valuable financial incentive to those who may be on the fence about whether to buy or continue renting.


 Overall, these three strategies offer innovative approaches to improving housing affordability for first-time homebuyers in Canada, especially in the face of the current high cost of housing. By providing more accessible mortgage options, reducing competition from real estate investors, and incentivizing homeownership through tax incentives, we can help more Canadians achieve their dream of owning a home. It is time to break down the barriers to homeownership and ensure that all Canadians have the opportunity to build a secure and stable future through property ownership.

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