How a Montreal couple used disciplined saving and family support to buy a $710,000 townhouse
A Montreal couple with a combined income of about $425,000 saved for six years, put down $200,000 and chose a flexible mortgage to buy a $710,000 townhouse.
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By Torontoer Staff
A Montreal couple with a combined household income of roughly $425,000 bought a three-bedroom townhouse outside the city for $710,000 last year after six years of disciplined saving and careful planning.
They took possession a year ago with a 28 per cent down payment and a mortgage structured for flexibility, prioritizing lower risk and lifestyle stability over rapid home-price appreciation.
How they saved
Adam, 27, an associate portfolio manager, earned about $350,000 of the household income. His fiancée works in communications and marketing. For six years Adam saved aggressively, putting away about 45 per cent of his after-tax pay. After maximising his TFSA and FHSA, he channelled additional savings into non-registered investments, including Government of Canada bonds, because the home purchase was a near-term goal and he wanted to limit market risk.
When the couple was ready to buy they had $200,000 for a down payment, about 28 per cent of the purchase price. Adam funded roughly half of the deposit. Of his portion, 66 per cent came from non-registered accounts, 24 per cent from his FHSA and 10 per cent from his TFSA. The other half was a family gift, mostly from his fiancée’s grandfather with additional support from her father.
Budgeting and choosing a price
Although the couple qualified for a preapproval of up to $1.1 million, they decided that amount felt unrealistic. Adam spent six months building a detailed spreadsheet to test what housing costs would still leave room for travel, charitable donations and family spending at the holidays. The model listed utilities, property taxes, insurance, maintenance, an emergency fund and potential purchases such as a second vehicle. That process helped them select a townhouse of about 1,400 square feet with three bedrooms and a private double garage, which they plan to keep for at least five years.
Mortgage choice and monthly costs
The couple consulted colleagues in finance, family members in banking, two lenders and a mortgage broker before signing. They chose a 25-year amortization and a five-year variable mortgage priced one percentage point below the bank’s prime rate, prioritising transferability and lower penalties if they sold before the term ended. At the time banks were forecasting rate cuts and they felt they had a sufficient cushion to handle fluctuations.
Their current monthly housing outlays are roughly:
- Mortgage: approximately $2,600
- Home insurance: about $200
- Utilities: about $260
Upfront and move-in costs
Beyond the down payment, the couple faced typical closing and move-in expenses. They paid a home inspection fee and legal costs, land transfer tax, moving truck rental and then invested in renovations and furnishings to make the house their own.
- Purchase price: $710,000
- Down payment: $200,000 (28%)
- Home inspection: $850
- Legal fees (notary): $2,500
- Moving truck: $2,000
- Land transfer tax: approximately $14,500
- Renovations: $8,000
- Furniture: $30,000 to $35,000
Making the house a home
Initial ownership felt like a to-do list. They spent about $8,000 on cosmetic renovations, including painting, light fixtures and a new bathroom vanity, and roughly $35,000 on furnishings. Over time the space has become more social: they have hosted dinners and adopted a dog, which helped the place feel lived in.
A home purchase comes with more uncertainty and stress than any spreadsheet can capture. Buy for the right reasons, with the right partner and remember buying a house is a marathon, not a race.
Adam
Practical takeaways
- Prioritise liquidity for near-term goals, using lower-risk vehicles if you need funds within a few years.
- Build a full budget that lists recurring costs and one-off expenses before deciding on a purchase price.
- Seek multiple opinions when choosing a mortgage, and consider portability and penalty structure if you expect to move.
- Factor furnishing and renovation costs into your homebuying budget.
Their purchase combined strong earnings, family assistance, conservative saving and a willingness to limit borrowing. For this couple, that mix delivered a home they can afford without sacrificing other priorities.
homeownershipfirst-time-buyersavingsmortgagesMontreal
