According to the latest affordability report by the National Bank of Canada, it can take up to 36 years to save for a down payment on a non-condo home in an expensive market.
Canadian hoping to buy a home on a median income need to save for approximately 104 months (9 years) for a non-condo home in an affordable market. Since 2000, the average has only been 49 months (4 years).
In Vancouver, one of the lease affordable markets, it takes a median household 431 months (36 years) to save for a down payment as of Q3 2021. This is a large increase from the previous quarter when the average was 410 months. And a staggering increase since 200 when it was approximately 147 months (12 years).
Surprisingly in Toronto, Canada’s least affordable city, it takes a household 330 months (28 years) to save a down payment as of Q3 2021. This is up from 318 in the previous quarter and astoundingly from 2000 where it took just 64 months (5 years).
Here in Victoria, the estimated time to save a down payment is 350 months (29 years), whereas in 2000 it was just 68 months (6 years).
Financial experts are now advising parents on how they save money to assist their children with a down payment for their first home.
JP Real Estate understands the difficulties and frustrations many buyers are facing in the current market and we want to help. Give us a call to talk about how we can assist you with buying a home.