Home prices in many Canadian markets are just insane right now. Double-digit year-over-year price increases of over 15% aren’t uncommon in the news, and when the average price of a home is going up by more than $100,000 per year, it’s difficult for would-be first-time homebuyers to hold on to hope that they’ll be able to enter the market.

Luckily, all is not lost. There are a few strategies and options you can consider that may help make your dream of home-ownership a reality – if you’re willing to make some adjustments to your expectations.

Start with a Condo for Your First Home

The majority of the growth in real estate this past year has been in low-rise units; that’s detached, semi-detached and townhomes. Condos have been behaving very differently. As people look to move out of the city to get more space during this pandemic, rents have declined and driven many investors to sell their units… which in turn has driven condo prices down slightly.

The market will eventually rebound, and while prices are already increasing, there are still fair prices to be had out there. If you had your mind set on a townhouse or semi, this may be an opportunity to re-evaluate in the short term. You can always upgrade later!

Broaden Your Search Geographically

Your preferred house in your preferred city may be out of reach, but that doesn’t mean you can’t score a great place somewhere else. Not all markets are rising at the same breakneck pace, and if you’re willing to compromise a little on location, you may be able to find a home that fits your budget.

Buy a Home with Someone Else

Another interesting way to get into the market is to buy jointly with someone you trust. This allows you to split all of the costs – and benefits – of home ownership down the middle. It means all of your expenses will be halved, and while your equity will also be halved, at least you’ll have equity and be able to benefit from that while continuing to build your savings.

In order for this to work, you and your partner will both need to have solid credit profiles, as the bank will look at both of your situations when approving your mortgage. The other thing to be aware of is that you’ll both be jointly and severally liable for the mortgage, meaning if one of you misses your half of the payment, your lender can go after the other for the money. That’s why it’s super-important that you buy with someone you trust and know very, very well.

One more major caveat here: joint ownership can impose some stresses on a relationship if you disagree with your co-owner on important issues like upgrades and living styles. If you’re a neat freak and your prospective co-pilot is a slob, do not buy together. The police have enough to worry about without getting a call about a double-murder.

Borrow from Family

Ok, not everyone has the option to borrow from the Bank of Mom and Dad. But if you’re lucky enough that your parents are in a financial position to support your first purchase, you should know that there’s no shame in accepting help to buy your first home. You can always structure it as a loan that you repay them for… and in the meantime, you’ll get your foot on the first rung of that property ladder and start building equity. I don’t know many parents who have the means to help their kids buy a home and would choose not to do so.

Of course, if this doesn’t describe your parents (and for many of us, it doesn’t), there is one other potential option… keep reading.

Take Advantage of an Equity Loan

Some condo builders are realizing that, in many markets, the average first-time homebuyer just can’t afford to get into the market with prices going the way they have. In response, some have created equity loan top-up programs in partnership with the local government. These programs provide interest-free, payment-free loans that only have to be repaid once the unit is sold, and they’re a boon to first-time buyers.

Now if you take one of these loans, bear in mind that they come with restrictions. Most often, you’ll need to stay in the unit for a minimum period of time (say, two years), and can’t rent out your unit to anyone else during that period.

Wrapping it Up

Experts and amateurs alike have been predicting a bursting of the Canadian housing bubble since the financial crises of 2008. While annual price increases have definitely fluctuated since then, they’ve showed no signs of full-out bursting. Considering all the pent-up demand for immigration that’s been building as a result of this pandemic, I’m not so sure that the prices we’re seeing are going to drop significantly at any point in the near future.

And if you buy right before the bubble bursts? Well, hindsight is 20/20. At least you’ll own your home, and be able to take solace in the fact that prices will recover. After all… they’re not making any more land these days, are they?