(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

Hospital’s Chief of Staff asks for vigilance

Doctor stresses vigilance and compliance to guidelines to mitigate future surge in COVID-19 cases

Chamber provides support during COVID-19

Columbia Valley Chamber of Commerce offers info and tips for businesses

Pioneer temporarily switching to e-editions only

The paper will only be available online during COVID-19 after tomorrow’s issue hits the news stands.

Hospital’s Chief of Staff asks residents for help containing COVID-19

Invermere & District Hospital Chief of Staff says COVID-19 cases here, caution and care needed

6.5-magnitude earthquake in Idaho shakes the Kootenays

An earthquake was reportedly felt just before 5 p.m. throughout parts of B.C. and Alberta

First Nations, remote communities need special attention in pandemic, Freeland says

Health-care workers, seniors, Indigenous Peoples some of people most at risk, health officials say

BC Hydro offers three-month bill ‘holiday’ for those affected by COVID-19

Industrial customers can defer half of their power bills

COVID-19: Social media use goes up as country stays indoors

Overall messaging is up more than 50 per cent over the last month

Some April Fool’s Day jokes bring much-needed laughter; others tone deaf to COVID-19

Police are warning the public not to use the ongoing pandemic as a punchline

Canada’s 75% wage subsidy is coming, but not for several weeks: finance minister

Subsidy will cost Canada $71 billion, but push down cost of emergency benefit, Morneau said

Call before you dig into spring projects during isolation: BC 1 Call

BC 1 Call gives free checks for utilities in the area of a desired outdoor project

B.C.’s intersection speed cameras putting more tickets in the mail

One Nanaimo location delayed after speed limit reduced

B.C. records five new COVID-19 deaths, ‘zero chance’ life will return to normal in April

Province continue to have a recovery rate of about 50 per cent

High cost, limited coverage for asthma medicine a concern during COVID-19 pandemic

B.C. man says he skips puffs to save money, but others have it worse

Most Read