Toronto Condo Top producer . Saving for 24 years with an annual income of 180000 will be enough for the down payment of a detached house. According to the latest data report from the National Bank of Canada (National Bank) on housing affordability.
Potential Toronto apartment buyers not only need a minimum household income of 120000 yuan a year, but also have to save for at least four years to afford an apartment in Toronto (the average price is 615, 000 yuan).
As for those who want to buy independent houses, it means saving more money and better patience.
The National Bank sets the average price of non-apartment houses in Toronto at 1.04 million yuan, with buyers earning 180000 yuan a year and saving for 24 years.
This long savings period is based on the fact that homebuyers save 10% of their annual income and make the lowest down payment.
If the person’s income is high enough, or if he is willing to save a higher proportion of his income, the time required can be greatly reduced.
Toronto is the second largest home-buying city in Canada, after Vancouver.
According to the National Bank, Canada’s overall housing affordability (housing costs as a percentage of total household income) is actually rising every quarter in 2020, a trend that appears to be slowing because of soaring property prices.
The housing market is not very good this quarter, with high incomes and record low interest rates completely offset by soaring house prices, the report said.
If we start saving to buy a house now, we may be able to save enough for the down payment before we retire.