(Wikimedia Commons)

How long to save up for down payment in Vancouver? One study says 52 years

Greater Vancouver, Fraser Valley and Greater Toronto markets round out the steepest three

Median-income earners would have to save 20 per cent of their salary for 52 years to afford a home in Greater Vancouver, according to a new study.

Calculations released by real estate agency Zoocasa on Thursday found that median-income households earning $72,662 in the region, where the benchmark home price costs $993,300, would qualify for a mortgage of only $241,994.

This would leave a shortfall of $751,306, necessitating a hefty down payment with a savings timeline that spans decades.

READ MORE: Millennials in Vancouver get least value for real estate dollar, report says

Overall, the study found median-income earners would not be able to afford homes in about half of Canada’s major housing markets.

In seven of 15 urban centres, such as the Fraser Valley in B.C. and Greater Toronto Area, median-income households would not qualify for a mortgage large enough to fund their benchmark home purchase.

In the eight other markets, such as in the Prairies as well as parts of the Maritimes, the study said median-income households would be able to save up the required down payment in less than a decade.

READ MORE: Prices slide as more homes on market in Abbotsford

For the study, Zoocasa calculated the maximum mortgage that median-income households would qualify for in each region, assuming a three-per-cent interest rate and 25-year amortization, and that the equivalent of one per cent of the total home purchase price would be put toward annual property taxes.

An additional $100 per month for heating costs was also factored into the calculation.



karissa.gall@blackpress.ca

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Only 13 new COVID-19 cases confirmed by Alberta gov’t Saturday

There’s currently only two active cases in province’s central zone

Central Alberta naturalists fear pristine headwaters will be contaminated by coal mine

Chutes of the Ram constitute one of Earth’s ‘most beautiful’ spots

Every Albertan eligible for COVID-19 testing

22 new cases confirmed on Friday

Playgrounds, skate park, ball diamonds open in Eckville

The facilities in town re-opened the afternoon of May 28 with restrictions

Fast-food restaurants serving up free non-medical masks

Free protection will come in packages of four

Facing changes together: Your community, your journalists

Eckville Echo is firmly committed to seeing you through the changes ahead, but we need your help

COVID-19 cancelled their wedding plans, so they married on a B.C. mountaintop

Ceremony was live streamed to friends and family around the world

International student worry about pandemic as decisions loom on travel to Canada

Zohra Shahbuddin is weighing whether to enrol this fall or put off coming to Canada until next year

How finding a ministerial home for CMHC caused ‘madness’ in November

The Canada Mortgage and Housing Corp. manages the national housing strategy

‘What do we do now?’ Labour dispute at Regina refinery nears 6 months

About 700 unionized workers were locked out by refinery owner, Federated Co-operatives Ltd., Dec. 5

Police need more than an unverified tip to avoid drug-case entrapment: top court

Police need more than an unverified tip to avoid drug-case entrapment: top court

N.S. police received warnings in 2011 about man who would become mass killer

N.S. police received warnings in 2011 about man who would become mass killer

Trudeau acknowledges ‘anti-black racism’ in U.S., with ‘work to do in Canada’

Trudeau acknowledges ‘anti-black racism’ in U.S., with ‘work to do in Canada’

Want a mask with your Big Mac? Alberta handing out masks at drive-thrus

Want a mask with your Big Mac? Alberta handing out masks at drive-thrus

Most Read