Bold reality check: you don’t need a mortgage to own a home, but in today’s market, buying outright can feel almost unimaginable—and Jake proved it’s possible with extreme saving and a timely inheritance.
After five years of focused planning and a sizable inheritance from his late father’s estate, 35-year-old Jake closed on a one-bedroom condo in Burlington for $415,000, becoming mortgage-free. The building offers a gym, pool, and lounge, and his monthly condo fee is $550. He takes possession this month.
Jake acknowledges Canada’s strong culture around homeownership—he calls it an obsession here—but owning his own place mattered deeply to him anyway. He kicked off his plan at the pandemic’s outset, aiming to save roughly $200,000, which aligned with the expected size of his inheritance. He reasoned that combining these funds would be enough for a condo on the outskirts of Toronto.
His strategy was brutally pragmatic: live at home, work from a dedicated home office, save aggressively, invest wisely, and only then pull the trigger to buy property outright. Living with his family allowed him to cut expenses drastically. He spent about 10 percent of his income on day-to-day living, which now totals just over $100,000 annually, leaving room for one vacation per year. He admits there were extreme compromises along the way.
Growing up with minimalist influences, Jake learned to do more with less, which made financial discipline feel manageable rather than restrictive.
Once he had the funds, he parked them in guaranteed investment certificates (GICs) for safety and accessibility, seeking higher returns than typical savings accounts. During the pandemic, he sometimes earned up to 5 percent interest.
“I locked in for a year at a time and renewed when each term ended. In hindsight, I could have been more aggressive when rates were high, but it was a solid deal at the time,” he says.
By 2024, Jake began touring condos in Hamilton and Burlington and found a unit that balanced size, price, and amenities. He is comfortable using his father’s gift to purchase a home, noting that more people are relying on gifts and inheritances to become homeowners today. “Buying without help isn’t the Canadian reality for our generation.”
In a departure from typical first-time-homebuyer routes, Jake bought outright—no mortgage, no monthly principal payments beyond condo fees, utilities, and taxes. Owning the unit free and clear lets him focus on saving and growing his wealth for the future, rather than servicing debt.
“The issue with mortgages is that you’re essentially making minimum payments while your money sits outside your pocket,” he says.
Jake moves into his condo this month and plans to stay at least five years, using the period to continue saving and building equity. He envisions a future challenge: bridging the gap from a $400,000 condo to a million-dollar home. “That gap is substantial.”
Closing costs included:
- Legal fees and land transfer tax: $1,900 (with a $4,000 first-time homebuyer rebate on the tax)
- Moving, painting, and furniture: about $5,000
Ongoing costs include:
- Mortgage payments: none
- Condo maintenance: $550 per month
- Home insurance covering fire, water, and belongings: about $350 per year
- Hydro: roughly $150–$250 per month
Bottom line: for a single buyer in Ontario, the path to ownership is incredibly challenging. A well-thought-out, long-term plan—and the discipline to stick with it—can turn an ambitious goal into reality, even in a tough market.
Would you consider a mortgage-free route if you had the chance, or do you think leveraging debt remains a smarter path for most buyers? Share your thoughts in the comments.
