How First Time Home Buyers Are Becoming Landlords in Hamilton

In today’s real estate climate, more and more first-time home buyers are deciding not just to buy a home—but to buy smart. Welcome to the world of house hacking: a strategy where you live in one part of a property and rent out the rest.

For home buyers in Hamilton and surrounding areas like Burlington, St. Catharines, and Brantford, this approach is becoming more than just a trend—it’s a strategic move to build wealth, reduce monthly costs, and get a head start as a real estate investor.

Let’s break down how it works, why it’s gaining traction, and how you can get started.

1. Why More First-Time Home Buyers Are Choosing to Be Landlords

The market is competitive, and affordability is tight. Many buyers are realizing that traditional ownership might not be the most financially efficient move—especially with rising home prices and high interest rates.

So instead of buying a single-family home, they’re buying duplexes, triplexes, or homes with legal basement suites.

Here’s why this model is catching on:

Rental income helps cover the mortgage
Offset living costs while building equity
Jumpstart your real estate investing journey
Increased eligibility through CMHC multi-unit programs

First-time buyers are no longer just looking for dream kitchens or fenced-in yards. They’re looking at ROI, rental potential, and resale strategy.

2. What Is House Hacking (And Why It Works)?

House hacking is simple: you live in one unit of a multi-unit property and rent out the others. That rent contributes to (or even fully covers) your mortgage, utilities, and other costs.

Let’s use an example:

You buy a legal duplex in Hamilton for $650,000
You live upstairs, and rent out the lower unit for $1,800/month
Your mortgage (with 5% down) might be around $3,200/month
Rental income covers over half your housing cost

Now you’re living for $1,400/month while building equity and gaining landlord experience.

Popular house hack properties:

Duplexes in Crown Point, Stinson, or Barton Village
Triplexes near downtown or McMaster University
Homes with finished basement apartments in Mountain or East End

3. Financing: How First-Time Buyers Can Make It Work

Many think multi-unit properties are out of reach, but with the right lender and strategy, it can be surprisingly attainable.

Financing Options Include:

CMHC-insured multi-unit financing: as low as 5% down if you’re living in one unit
Rental income used to boost your mortgage qualification
First-Time Home Buyer Incentive: shared equity from the government
Gifted down payments from family allowed

Learn more about the First-Time Home Buyer Incentive

4. Benefits of Being a First-Time Buyer and a Landlord

1. Passive Income: You’re generating cash flow even before your first mortgage payment.

2. Equity Growth: Property values in Hamilton and nearby markets continue to rise, which means your investment grows too.

3. Tax Deductions: You may qualify for tax benefits on repairs, mortgage interest, and depreciation related to the rental portion.

4. Flexibility: Want to move out in a few years? Rent your unit and convert the entire property into a full investment asset.

5. Skills: You’re building knowledge of property management, tenant screening, and asset growth.

5. How to Find the Right Property

Not all homes are suited for house hacking. Here’s what to look for:

Zoning: Make sure the property is legally zoned for multiple units
Layout: Separate entrances and self-contained units preferred
Neighborhood: Look for high rental demand, near transit, universities, or hospitals
Condition: Move-in ready saves renovation headaches

Check our latest duplex and triplex listings in Hamilton