8 elm st, toronto, ontario, m5g 1g7.What is the annual salary to buy a suite in Canada? When it comes to buying a house in Toronto, what I hear most is “the house price is too high to afford it!” , “the world invested by the rich”.Please Visit: 8 elm st, toronto, ontario, m5g 1g7 to Get Your VVIP Registration Today!
Many people may feel that their income cannot afford the increasingly expensive house price, whether it is a deposit down payment or a monthly mortgage.
According to the latest survey data, home buyers now need at least C $223000 in household income and a huge down payment to buy an ordinary house.
Home loan expert James Laird (James Laird) says it takes more effort to buy an apartment now than it did six months ago.
James Laird (James Laird) is president of CanWise Financial and co-founder of the interest rate watch site ratehub.ca.
According to the latest figures released by the Toronto Real Estate Bureau, the average house price in GTA reached C $1.25 million in April.
This means that if you want to buy an ordinary house, not necessarily a luxury house, the required household income has soared from C $205000 six months ago to C $223010 today.
According to Laird, the prerequisite is that you can afford a 20 per cent down payment, that is, $250888.
This is the minimum requirement for a house over $1 million.
To put it simply, to buy the cheapest property in Toronto, prepare a down payment of at least C $250000, and your annual salary must reach C $223010.
Who can make so much money, it is conceivable that not many of us can achieve this goal.
Canadian banks and economists often publish research reports that people in Toronto can no longer afford such high house prices at their current pitiful wages.
According to Statistics Canada, as of 2019, the median after-tax income for non-elderly households under the age of 65 in Canada was C $93800.
The median after-tax income for couples with children is C $105500, while the median after-tax income for single-parent women is C $52500.
All in all, Toronto homeowners now need to spend 68.6% of their pre-tax income to cover housing costs, said Robert Hogue, senior economist at RBC.
“even if our housing market has cooled or prices have fallen recently, higher interest rates and housing costs are still unaffordable,” Hogg said.
Elke Rubach, president of wealth management firm Rubach Wealth, says that for many people, the real estate market in Toronto is simply unaffordable.
“most people cannot earn as much as C $200000 a year, and now historically low interest rates of 1 to 2 per cent will not last and people cannot afford to buy property.”
“if you need to sacrifice the basic necessities of your life to pay these mortgages or save money to buy a house, then there is no point in buying.”
“people are obsessed with buying, but the lack of financial knowledge and emotional buying is a big problem,” Rubach said. ”
If you can’t afford it, you can still rely on “Mom and Dad Bank”.
In China, those who cannot afford a house are supported by their parents, and Canada is no exception.
According to the latest survey of the Canadian Mortgage and Housing Corporation (CMHC), almost 1/5 (18%) of first-time home buyers rely on their families to help pay the down payment.
“Mom and Dad Bank” has long been popular in cities like Toronto and Vancouver because of soaring house prices.
According to a survey previously released by RateHub, more than 40 per cent of young people in BC province said they needed family help when buying a house.
The BMO survey found that almost half of young Canadians want financial assistance from their parents or relatives when they buy a house for the first time.
The proportion of first-time home buyers in Canada who received financial assistance from their parents was about 20% in 2015, rising to 30% by 2021.
Over the past year, Canadian parents have provided their children with a down payment of more than C $10 billion, accounting for 10% of the total down payment in the same period.
First-time buyers in Toronto have an average down payment of more than C $130000 from their parents.
Those who buy luxury homes (Move-up buyers) get more, and those who buy bigger and more expensive homes receive nearly C $200000 from their parents and relatives.