Mortgage-free ownership becoming 'tougher' in Windsor: Experts

Despite a high rate of mortgage-free homeowners in the Windsor-Essex region, experts believe higher costs and interest rates will make paid-off homes less of a reality in the coming years.

A study released by Casivoo stated Windsor has the fifth highest rate of mortgage-free homeowners amongst 39 Canadian Census Metropolitan Areas.

Using data from Statistics Canada, the online gambling expert determined that 42.8 per cent of homeowners are mortgage-free.

Michael Brain, a mortgage broker of nearly 30 years, told CTV News, given the region’s previous reputation for affordability, the report “makes sense.”

“We've [had] the most affordable priced homes in Canada forever. If you go back to even, 2010, I think the average house price is $153,000,” Brain, the owner of DLC Advantage Mortgages, said. “So, I think people made a good wage when they had a mortgage, and they were able to pay it down and be very disciplined.”

However, the Windsor housing market has experienced significant growth since 2020. Brain said rising costs have made it “a little tougher” for those acquiring a mortgage.

“I don't think wages are keeping up with the price of houses. So, I think it's tougher and tougher to make those mortgage payments, and I'm finding a lot of first-time homebuyers are having their parents cosign, which was a Toronto phenomenon. Now it's a local thing,” Brain said.

In an interview with CTV News, Maggie Chen, the president of the Windsor-Essex County Realtors Association, said the average house price in the Windsor region has tripled over the last decade.

Chen said she was shocked to learn Windsor’s homeownership ranking.

The longtime realtor calculated a mortgage based on the $576,000 average home price, using a 4.76 per cent interest rate and a 20 per cent down payment.

“So, you have to have an annual income, household income, of $115,000 a year,” Chen calculated.

She said her main advice to clients is to get into the market when possible, rather than trying to predict when a decrease in costs will occur.

“For the new generation of homeowners, it might be getting more and more challenging because of the higher mortgage amount, because of the high interest rate, because of, you know, all the other costs going up,” Chen added.

Brain believes despite the rising cost, Windsor homeowners will still have an opportunity to pay off their homes, if they remain disciplined.

"Find something that you can afford, stay within your guidelines, find the best mortgage and house that meets your lifestyle," Brain said.