Purchasing a home in BC is out of reach for many due to astronomical housing prices, and a new report reveals just how much moolah you need for a down payment to buy a home.
The report from NerdWallet ranks the minimum down payment required to buy a home in all Canadian provinces. BC leads the way, and it’s not even close.
“The information in the following table is based on Canada’s minimum down payment guidelines and the average sale prices for July 2024 provided by provincial real estate associations,” NerdWallet notes.
Based on an average sale price of $959,480 in June of this year, NerdWallet says the minimum down payment required was $70,948. A 20% down payment is even more depressing: $191,896.
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Ontario is the runner-up to BC, but you’re shaving off over $10,000 on your minimum and 20% down payment options.
NerdWallet
When you combine these numbers with the average salary in BC, it’s hard to imagine how any average-income earner could hope to purchase a home, likely needing to save up for many, many years without the help of the bank of mom and dad.
“As of Jul 24, the average annual salary in British Columbia is $53,042. Just in case you need a simple salary calculator, that works out to be approximately $25.50 an hour,” ZipRecruiter states.
Saving is the key, according to NerdWallet.
“Expect a long, slow process, but every dollar you put away literally gets you closer to owning your own home.”
Focusing specifically on Metro Vancouver, according to the GVR monthly market report, 2,333 homes were sold last month. It also reveals the benchmark prices for homes in Metro Vancouver. If you’re looking to enter the market and own your first home, you’ll have an easier time saving up for a down payment when purchasing an apartment or a townhome rather than a detached single-family house.
Last month, the benchmark price for a detached home reached $2,049,000, $1,124,700 for an attached house, and $768,200 for an apartment.
Are you currently saving up to buy your first home? Let us know in the comments or email [email protected] if you want to share your story with us.