(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

94 new cases of COVID-19 in Alberta on Wednesday, two more deaths

1,146 active cases with 9,891 recovered cases

UCP government making changes to the Assessment Model Review; County of Wetaskiwin could see a 70 per cent hike in taxes

Changes would cause a 35.5-70.7 per cent residential mill rate for the County of Wetaskiwin.

COVID-19: One more death reported in central zone

Number of active cases has decreased by more than 200 since last week

Thorsby RCMP investigate August long weekend shooting

Thorsby RCMP arrest youth in relation to the late night shooting.

Wetaskiwin businesses robbed tail end of August long weekend

Multiple businesses off of 56 Street in Wetaskiwin, Alta. were broken into.

Protestors for Indigenous Lives Matter gather in Wetaskiwin

Protestors for Indigenous Lives Matter gathered in Wetaskiwin, Alta. Tuesday August 4,… Continue reading

Alberta man’s body recovered from Okanagan Lake after five-day search

‘The depth of the water, as well as the topography of the lake, made the recovery of the deceased very challenging’ - RCMP

Feds look to finalize deal with airlines amid contact tracing concerns

Feds look to finalize deal with airlines amid contact tracing concerns

Dwindling B.C. bamboo supply leaves Calgary Zoo biologists worried about pandas

Zoo has been trying to send pandas back to China since May

Booking.com cuts workforce by thousands as travel atrophies

Booking.com cuts workforce by thousands as travel atrophies

Ford COO Jim Farley to lead company, CEO Hackett to retire

Ford COO Jim Farley to lead company, CEO Hackett to retire

Stingray CEO expects rapid growth as COVID’s impact fades, new services unfold

Stingray CEO expects rapid growth as COVID’s impact fades, new services unfold

TSX closes higher as energy, loonie strengthen and gold reaches another record

TSX closes higher as energy, loonie strengthen and gold reaches another record

Facebook launches its new TikTok clone, Instagram Reels

Facebook has a long tradition of cloning competitive services

Most Read