(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

Invermere buys Athalmer land for $5 million

Celebratory barbecue to come

Explosive Dynamiters too much TNT for Rockies

Hometown crowd pulls for Rockies in last weekend’s home game

Outdated culvert thwarts spawning fish

Kokanee salmon blocked from upper Abel Creek

Protect your home from wildfire risk

FireSmart community meeting in Invermere November 5th

Feed the Valley

Free dinner / fundraiser for Columbia Valley Food Bank, on Monday October 14th

VIDEO: Trudeau plays defence in Maritimes today while Scheer fights for seats in Quebec

NDP Leader Jagmeet Singh, whose party has been on the rise in recent polls, is campaigning in Toronto

Advance voter turnout up 25% for first two days: Elections Canada

Two million people voted Friday and Saturday

Okanagan principals told to confiscate vaping products from students

Vaping is up 74 per cent in youth over the last two years, according to one Canadian study

‘Rather mild’ winter expected in B.C. this year

Northwestern B.C. will be the worst hit

Court action in Trail acid spills may take years

B.C. court case involves a number of defendants and a number of plaintiffs

In the news: Sprinting to the election finish line and anger amid Manitoba storms

First Nations residents forced to evacuate their Manitoba homes after a recent snowstorm

BC Ferries sees steady traffic of post-Thanksgiving weekend travellers

Ferries filling up fast, sailing waits at some terminals

‘Save the kids!’ Dorian survivor tells the harrowing story of his Canadian wife’s death

Family held a funeral and placed Alishia Liolli’s remains in a niche at a cemetery in Windsor, Ont.

Okanagan woman, 91, votes at advance polls despite broken hip, shoulder and wrist

Angela Maynard has voted in almost every election during her lifetime

Most Read