Canadians looking to purchase a home will have to save more and for longer on the minimum down payment, according to brokerage Nesto, highlighting the extent of the rise in home prices.
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Each month, the Canadian Real Estate Association (CREA) compiles a portrait of the average real estate price in Canadian provinces and cities.
Nesto used this data to calculate the time it would take to save the required minimum down payment, based on an annual savings of 10% of the consumer’s gross income.
According to Nesto, in Quebec, particularly in Montreal, the time it takes to save for a down payment has more than doubled in the last decade.
- The median price of a property in Montreal: $520,000
- Minimum down payment: $27,040
- Time required to save: 5.3 years
In British Columbia and Ontario, the market has seen many upheavals over the past decade.
Based on the average Vancouver property price of $1,210,700, a buyer will have to wait more than 44 years if they want to make the first down payment.
In the Queen City, the statistics are similar to the Greater Vancouver market.
Keep in mind that for properties priced at $500,000 and less, the initial down payment is 5% of the purchase price, while for properties priced at more than $1 million, this percentage rises to 20%.
For homes between $500,000 and $999,999, two calculations must be made. The first amount is equal to 5% of $500,000, while the second amount must be calculated based on the balance.
Stevens LeBlanc/JOURNAL DE QUEBEC