(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

Just Posted

Former NHLer Clint Malarchuk shares mental health journey in Lacombe

Former goalie and current mental health advocate supports Schizophrenia Society of Alberta

Lacombe Composite High School students organize climate change walk-out

Walk-out a show of solidarity with International Climate Activist Greta Thunberg

Yellow Door Dance donation supports purchase of a grand piano for the Lacombe Performing Arts Centre

Grand piano to be able to accommodate a broader range of concerts and performances

Lacombe County, Village of Clive sign Intermunicipal Collaboration Framework

Municipalities that share a common boundary must create an Intermunicipal Collaboration Framework

Lacombe County, Village of Alix sign Intermunicipal Collaboration Framework

Municipalities that share a common boundary must create an Intermunicipal Collaboration Framework

WATCH: 6th Bill’s Trail Run welcomes over 450 runners

Run advocates for the use and upkeep of Lacombe’s trails

Greta Thunberg meets with First Nations chief in Fort McMurray

Thunberg has turned her protest against climate change into a global movement

More beef products recalled due to possible E. coli contamination

The food safety watchdog has been investigating possible E. coli 0157:H7

Pot legalization has gone ‘well’, but ‘yellow flags’ on vaping: task force chair

Canada legalized cannabis for non-medical use on Oct. 17, 2018,

ELECTION 2019: Federal leaders hit final 24 hours of campaign

Many leaders remain in B.C. for the final hours of the campaign

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

The federal election campaign has reached a crescendo

Not a political question: Thunberg calls for climate action in Alberta

Edmonton police estimated the size of the crowd at about 4,000

Most Read