(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

‘Schools are healthy’: IH medical health officer

Children have a low risk of catching and spreading COVID-19

2020 overdose death toll rises to 73 in the Okanagan

Just under half of the deaths occurred in Kelowna

COVID-19 picture ‘much clearer,’ says Interior Health president

As fall routines set in, IH CEO Susan Brown reminds public to be vigilant in preventative practices

MP Morrison faults federal Throne Speech as new Parliament session begins

Kootenay-Columbia representative criticizes a lack of focus on jobs, support for resource sector

LETTER: Want more than a promise that Highway 1 will eventually be upgraded

What is the stance of the candidates for the B.C. election?

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Kamloops Mounties happened upon alleged gang-related robbery, kidnapping

Michael Mathieson is charged with armed robbery, unlawful confinement and kidnapping

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Interior Health reports five new COVID-19 cases

Across the region, 34 cases are active

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Penticton quadruple murder trial begins in Kelowna next month

John Brittain, 69, is facing three counts of first-degree murder and one count of second-degree murder

Historic BC Tree Fruits head office in Okanagan for sale

The company’s CEO said the decision was necessary due to a fickle fruit market

Most Read