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In the search for more bang for their buck, young Torontonians are heading to Hamilton to buy a home. Buyers are attracted to trendy streets like Locke, Bay and James street North. However head north east, you’ll find cheaper housing, but good luck getting approved for a high ratio mortgage.

While your income and credit may be good, mortgage specialists say down payments less than 20% must be insured leading lenders to factor in location.

“What you’ll find is a majority of people on that street to be renting and all of them are investment properties thereby is more risk for the lender because the actual owner isn’t in there.” Says Scott Nazareth from mortgages.ca.

To avoid default insurance, getting into a less marketable area would require deposits around 30-35% which deters buyers. Experts say it’ll be a seller’s market this spring and agents are suggesting that buyers get serious about their finances. So make sure you do your home work.