It’s no secret that the concept of home ownership in Toronto is a pricey one, and now a new report from Zoocasa is shedding light on just what it would take for someone to achieve that dream.
In a new report released on Thursday, the real estate website looked at where a median-income household could afford a home, and just how long it would take to do so.
The result? Toronto buyers should be prepared to settle in for the long-haul.
According to the report, the average home price in Toronto is $823,300, while the median household income sits at $78,373– only good enough to qualify for a mortgage of $300,172, leaving a shortfall of $502,226 – a total of 63% of the total purchase price.
This means that it would take a household earning the median income and setting aside 20% of their income annually a total of 32 years to save the required funds to own their home.
For those really looking for the quickest route to home ownership Calgary might be the place to be.
The report found that it currently takes just one year to save up for a 5% downpayment to buy an average priced home in Calgary for a median income household, with 20% of their income set aside for this expense.
This is calculated based on the city’s average home price of $420,500, median household income before tax of $99,583, and maximum mortage of $415,454.
One-year timelines are also shared with Edmonton, Halifax, Winnipeg, Saskatoon, Regina, and Ottawa.
These cities are well below the national average of 25 years for a down payment.
Canada’s second largest city, Montreal, is also within the realm of affordability with its down payment timeline hovering at eight years, based on a 27% down payment of $99,393 on a $369,500 average priced home.
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In seven housing markets in the country, a median-income earner would not qualify for a mortgage sufficient to fund their home purchase, and would require a hefty down payment.