(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

PPC party discredits its former Kelowna-Lake Country president’s past accusations of racism

Daniel Joseph left the party in March and is now an independent candidate in the riding

Judge orders credit union’s bank records for Kelowna social worker facing theft allegations

The man is accused of negligence, breach of contract, fraud and a conspiracy with Interior Savings

Design submitted for new restaurant at location of former Kelowna hot-spot Rose’s Pub

Cactus Restaurants purchased the property earlier this year

Cancer cure breakthrough needs more research

Dr. Connie Eaves, a leading biotech research scientist in Canada, was keynote speaker at cancer care forum held Friday in Kelowna

Kelowna man sentenced to 20 months for having sex with minor

The incidents occurred over a four-month period between February and May of 2018

Kelowna business sponsors BC SPCA gala

Orthoquest Pedorthics and Rehabilitation returns as one of the gala sponsors for 2019

Okanagan Lotto 649 ticket matches five of six numbers and bonus

Ticket in Saturday’s draw bought in Vernon and is worth nearly $32,000

Summerland once had college campus

From 1906 to 1915, Summerland’s Okanagan College operated in the community

Hundreds turn out for Singh, NDP candidate rally in Penticton

The messaging was clear, NDP “chooses you”

Summerland holds multiple events to launch festive season

Festival of Lights, Light Up the Vines and Sip ’n’ Shop will be held in late November and December

VIDEO: Meet your Kelowna-Lake Country candidates

All seven Kelowna-Lake Country candidates answer questions about themselves and their policy

VIDEO: Meet your Central Okanagan-Similkameen-Nicola candidates

Central Okanagan-Similkameen-Nicola candidates answer questions about themselves and their policy

PET OF THE WEEK: Moose still needs a home

Critteraid cat wants a nice, quiet environment

Jack’s Devils beat Quinn’s Canucks 1-0 in NHL brother battle

New Jersey youngster scores first career goal against Vancouver

Most Read