If you’re trying to buy a home in Toronto it could take you nearly 40 years to save up for a down payment, while it could take less than five years to save in other major Canadian cities, according to a new study.
Zoocasa released a new report this week comparing how many years it would take to save a down payment for a single-family home in 20 major cities across Canada.
The real estate listing site calculated the required down payment for each city and then determined how long it would take for a median, post-tax income household to save for the minimum down payment on a single-family home, using Statistics Canada data, and assuming a savings rate of 6.2 per cent of their annual income.
The national average is 7.3 years to save a home in Canada, with an average home price of $659,395 in Jan. 2024 and a minimum down payment of $32,969 required based on a median household income of $73,000.
Toronto ranked third out of the 20 cities for the longest amount of time needed to save for a home, at 39 years. This is based on an average home price of $1,026,703 and a minimum down payment of $205,341.
Meanwhile, Vancouver, B.C., unsurprisingly topped the list as the most unaffordable market with a whopping 50 years and six months needed to save for a down payment, followed by Fraser Valley, B.C. at 41.8 years.
On the flip side, there are seven cities where people can save up for a down payment in under five years.
Regina, SK ranked as the city with the lowest amount of time needed to save at 2.2 years, for an average home priced at $282,961, with a minimum down payment of $10,753.
“And when we talk affordability, Regina truly shines. Its housing market offers some of the most budget-friendly options nationwide, with prices a staggering 57% below the national benchmark. Plus, with a median post-tax household income of $79,000—8% higher than the national average—living in Regina means you’re getting a great deal while still earning more than some other Canadians,” reads the report.
Following Regina is Thunder Bay, ON at three years, with an average home price of $264,538 and a minimum down payment of $13,227.
Saint John, NB is the third most affordable city for saving a home at 3.4 years, followed by Saskatoon, SK (3.8 years), Edmonton, AB (3.9 years), Winnipeg, MB (4.2 years) and Quebec CMA, QC (4.7 years).
For people wanting to live in the most expensive provinces, British Columbia and Ontario, Zoocasa recommends considering a strategic approach to saving for bigger down payments.
“…Exploring opportunities in smaller cities, away from bustling downtown cores, is a practical approach for those working remotely, where investing in a condo or attached townhome becomes more feasible. Or if you’re single, pooling resources to buy a property with a sibling or friend to build equity and save for down payment funds faster.”
