It’s time to make a pact: no more avocado toast.
And that’s just the first step to saving up enough dough to purchase a home in Toronto.
According to new data from Zoocasa, buying a house in Toronto is only accessible to those within the top 10% income group, as the city’s houses have a benchmark price of $873,100.
Toronto is the second-priciest Canadian city to dwell on the list. Vancouver buyers must be within the top 2.5% tier to buy a home, with the city’s benchmark of $1,441,000, sourced from the Canadian Real Estate Association and local real estate boards.
The study calculated the minimum income required to qualify for a mortgage in the above 13 census metropolitan areas (CMAs) across Canada. The calculations assume a 20% down payment, 3.75% mortgage rate, and 30-year amortization.
Findings were then cross referenced with income tax filings as reported by Statistics Canada to determine which income group buyers must align with in order to be able to purchase.
Findings show that it’s not just home-prices that call for buyers to be in such spaces of income. Similar requirements apply for apartments and condos, too.
According to the study, those in Vancouver and Toronto must still have an income within the top 25% to swing respective prices of $656,900 and $522,300.
On the flip-side, the study highlighted the most affordable place in Canada to buy a home: The Prairies.
It’s noted that for those within the top 75% income group in Regina, affording a home is feasible with a benchmark property costs $275,900. Saskatoon and Winnipeg are both close behind; incomes in the top 50% can afford homes priced at $301,900 and $326,433, respectively.
And even apartment purchasers can enjoy greater affordability in those places, with units accessible to the top 75% income group at respective benchmark prices of $160,200, $170,800, and 227,538.
So on top of quitting your avocado toast habit, there’s something else to consider: moving to Regina.