Most of us already know that saving for a down payment on a Toronto house is out of reach, but the amount of time it would actually take to do so may shock you.
According to a new Zoocasa report, it would take a median-income household 32 years to save for a down payment on an average Toronto home.
That's right, 32 years — better start saving!
The report, titled "Where Could a Median-Income Household Afford Real Estate in Canada?" outlines the affordability of 15 Canadian housing markets.
It states that the top five most affordable housing markets in the country are Regina, Saskatoon, Winnipeg, Edmonton and Calgary.
The GTA, to no one's surprise I'm sure, was ranked the third most expensive, behind Vancouver and Fraser Valley.
The report explains that the median household income before tax in Greater Toronto is $78,373 and the average price for a house is $802,400.
Unfortunately, a median-income household simply wouldn't qualify for a mortgage of that size. In fact, a household making $78,373 a year would only qualify for a house worth $300,174.
So, in order to purchase the benchmark-priced home, they would need a down payment of $502,226 — or 63 per cent —to cover the remainder of the purchase prices.
And yes, with a household income of $78,373, it would take 32 years to save up for a down payment of that size.
I guess I'll be moving to Regina!
by Mira Miller via blogTO