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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.
So if you want to have a home in Toronto, how much money do you need to earn to buy a house?
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. “
