It Takes One to Own One: Nearly one in four Canadians who intend to purchase a home, plan to buy solo

Single homeowners represent a quarter of Canadians buying or intending to buy a home, according to a new TD survey. A large part of this trend is driven by unexpected life circumstances, with Canadian homebuyers who are divorced (69 per cent) or widowed (35 per cent) saying they are more likely to purchase a home on their own, along with a growing number of single Canadians who say they’ll go it alone (67 per cent).

“Buying a home can be daunting for people who want to buy solo – but it doesn’t have to be,” says Marc Kulak, Associate Vice President of Real Estate Secured Lending at TD Canada Trust. “Whether you find yourself in a solo buying situation unexpectedly or by choice, there are ways to make it happen. Seeking advice from a mortgage specialist and having a solid plan – including understanding how you’ll afford your home over the longterm – is the best approach to feeling confident as you shop for a home, mortgage, insurance and that new sofa.”

Of the one in four Canadians who intend to buy independently, 86 per cent say they are confident in their ability to comfortably afford maintenance and ongoing costs of home ownership. And this shouldn’t come as a surprise given that Canadians planning to go in alone are already thinking through the associated costs – seven in 10 single Canadians say they thought about property taxes (76 per cent), home insurance (72 per cent) and maintenance (70 per cent) before purchasing their home, while two-thirds (67 per cent) considered utilities. Only nine per cent did not think about any of the costs associated with of home ownership before starting the purchasing process.

“Whether you’re buying on your own or as a couple, markets across the country can be challenging and you may not get everything you want,” says Kulak. “So, consult with a mortgage professional to find ways to make the process more affordable and achievable, and ultimately to attain your home owning goal.”

To help make solo home ownership a reality, TD offers some creative ways to help a single buyer successfully make one of the biggest purchases of their lives.

Buying solo doesn’t mean living solo: Just over one-quarter (27 per cent) of single Canadians who have or intend to purchase a home alone say they did or would consider having a tenant to make solo home ownership more affordable, while just under one-quarter (23 per cent) said they did or would consider a roommate. Having rental income can help pay down the mortgage principal more quickly. Be sure to qualify for your mortgage without rental income so you have flexibility if you decide a roomie or tenant is not for you.

Think beyond the picket fence: Before you make any commitments, do your research and seek out professional financial advice to know what you can afford. For example, you can check out the TD Mortgage Affordability Calculator online to see what budget works best for your situation. Remember, it’s not just a mortgage payment you have to manage – other costs including property taxes, insurance, and ongoing maintenance will add up. Your mortgage payments should be low enough so you can take care of all your monthly expenses, meet your savings goals and still have some wiggle room. It’s also important to have a contingency budget or slush funds set aside, to cover off emergencies and household maintenance.

Protect your investment: As a new home owner or landlord, it’s important to protect your newest and biggest investment. Be sure to research what type of insurance coverage will best fit your needs.

“From personal experience, I know being creative – and realistic – on ways to afford to own a home is going to get you in a home faster,” says Kulak.