It's no secret among my Ontario friends that Toronto's housing market and house prices are a major concern (and not for good reasons) for many potential homebuyers.
Although housing prices in Ontario are currently not rising as rapidly (and in some areas are even adjusting downwards) as in any other province, new data from Ratehub.ca (a mortgage brokerage platform that has been recognized as the best in the business in Canada for the past 4 years) shows that buying a home in Toronto requires a considerably high (and importantly, official) income.
According to the latest data, to afford an average-priced home in Toronto (which, as of February 2024, is priced at $1,093,900), you need an annual income of $214,100. It's worth noting that homes at this price point can be found (and quite nice ones at that) in the popular Newmarket, Caledon, and many other places in the GTA.
From the data presented in the table, it can be concluded that despite a drop in interest rates, in 11 out of the 13 Canadian cities studied, housing affordability decreased over the past month. The exceptions were St. John's, where the annual income needed to buy a home decreased by $1,000, and Victoria, where it decreased by $1,600. Toronto, as expected, showed the greatest increase, with rapidly developing Hamilton close behind, seeing a required income increase of $3,770 to buy a home.
Looking to buy a home with a less-than-six-figure income? In Winnipeg, Regina, Edmonton, Fredericton, and St. John's, you'll need a minimum income of less than $100,000 to purchase typical property. I work with the best local realtors in these cities (plus Calgary, Montreal, and the Laurentians), so if you're thinking about buying there - get in touch, I can help.
These figures were calculated by the mortgage brokerage based on a standard mortgage with a 20% down payment and a 25-year amortization, taking into account $4,000 a year in property taxes and $150 a month in heating bills.
But as you understand, in our wonderful but not perfect world, there are always options - call me directly at 905-909-8888, and let's discuss.