3 Ontario Cities Where It's Cheaper To Buy A House & You Don't Have To Live With Your Parents
It won't take over 10 years to save up for a down payment here.
Buying a home in Ontario feels like a pipe dream, but some cities make it easier than others.
The Ontario housing market is full of houses for sale, but how long does it actually take to save up for a down payment and closing costs?
Point2 released a new report on how long it takes to save up for these expenses across 50 of the most populated cities in Canada.
The report analyzed the average 20% down payment and closing costs, including land or property transfer taxes, legal fees and a home inspection, to find the most affordable areas to save up.
Spoiler alert — it can take a long time, so if you're not careful with your savings, you may find yourself bunking with roommates or your parents for the long haul.
The average downpayment of a home in Canada is $142,740, with closing fees coming in at $10,431, according to Point2, but luckily some areas are cheaper than others.
Using the 50/30/20 saving rule, which dedicates 50% of your after-tax income to needs, 30 percent to wants, and 20 percent to savings for a down payment, Point2 deduced the three easiest cities in Ontario to save up.
Greater Sudbury is the quickest spot to save up for a home in Ontario.
If you make an annual renter income of $54,929 and save 20 percent yearly, it will only take eight years to save up for the average downpayment and closing costs of $86,028.
$112,471 is the average upfront cost of a home in Kingston, and if you make an annual renter income of $58,951 and save 20 percent per year, it will take you ten years to save up.
The next quickest spot to save for a downpayment is London, where it will also take you ten years to save up the average downpayment and closing costs of $114,945 if you're making $56,411 and saving up 20 percent a year.
While ten years may seem steep, places like Richmond Hill will take you 22 years to save up, and Toronto will take you an average of 17 years to save up.
Here are the top 3 best places to save up for a home in Ontario, according to Point2:
- Greater Sudbury, eight years to save $86,028
- Kingston, ten years to save $112,471
- London, ten years to save $114,945
Here are the top 3 worst places to save up for a home in Ontario, according to Point2:
- Richmond Hill, 22 years to save $304,647
- Markham, 21 years to save $291,567
- Oakville, 20 years to save $286,705
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