Real estate in Canada

A major obstacle to purchasing a home in Canada is saving up a down payment. The ability for homebuyers to save for a down payment has become even more of a challenge as home prices continue to increase to record prices with an average national home price of $699,117 in Canada as of May 2024.

If you were to make the minimum down payment on the average home in Canada you would need $44,912 at the time of purchase. How long does it take to save for the minimum down payment? Let's start by looking at how much households have coming in. The median after-tax household income in Canada currently sits at $70,500.

So, with the average household income of $71,000, the monthly mortgage payment for the average house will be $4,000. Add in taxes, regular house bills, and maintenance, and it'll be close to $5000. So, after all the house payments, the average family in Canada will have an annual budget of $10,000 to pay for food, internet, telephone, health care issues, transportation, etc.

In other words, unless they have generous parents, they'll be renting forever.