FTLHB: First-time-laneway-home-buyer

Financing A Laneway Home

Did you know that one of the most overlooked financial perks of building a laneway house is the potential to bypass the hefty down payment? For aspiring first-time-home-buyers, a laneway house can be a great solution to get into your own place.

When you build on land you (or a family member) already own, you can sometimes leap over the down payment hurdle and jump straight into monthly payments—kind of like paying rent. And let’s be real, for many first-time buyers, it’s not the monthly payments that are the problem; it’s scraping together that initial lump sum that often stands between them and homeownership. 

So, picture this: you’re living in your very own home, designed just for you, all within a budget of $500,000 – give or take. Now, compare that to owning a one-bedroom (or less..) condo for the same price. If you have a single detached home in the family that you are able to borrow against… and build behind, a laneway home is a one-of-a-kind opportunity to get into your first home without the hefty purchase price of land, rigorous approval process, and often unattainable down payment.  

Let’s break down the numbers with a couple of assumptions, shall we? Imagine you’re borrowing $500,000, your family has enough equity in your existing property that you don’t need a down payment, and you’re looking at a 5-year fixed rate of 5.39% over 30 years. 

Your monthly payment hovers around $2,800. That’s doable, right?

If these numbers are making you nod your head, why not connect to chat about whether a laneway home could be the right option for you?