This is how much money you need to make per year to afford a house in Toronto

According to the National Bank of Canada’s latest Housing Affordability Monitor, you need an annual household income of $205,342 to be able to purchase a house that costs $1,195,754.

Where do houses cost that much, you might ask? Well, Toronto of course.

To place this in context, that’s 330 months (roughly 27 years) of savings to put aside the 10 percent required for a downpayment for a house or 58 months (four years) for a condo. In total, potential condo buyers need an annual household income of $134,726, according to the National Bank of Canada.

“Housing affordability in Canada worsened by 1.7 points in Q3’21, marking a third consecutive deterioration since the beginning of the year,” writes the bank in its report.

“Over the last 12 months, affordability has worsened the most in a decade. It would now take 46.5 percent of income for a representative household to service the mortgage on a representative home in Canada.”

According to the Canada Mortgage Housing Corporation, unaffordability is defined as a market where housing takes up more than 30 percent of a home’s pre-tax income, which, unsurprisingly, is necessary for many would-be home buyers in order to afford a home in Toronto.

“Indeed, home prices continued their relentless upward trajectory rising 4.6 per cent in the quarter and 18.6 per cent year on year. That annual figure was the most it has ever been since 1989.”

Source: National Bank of Canada Via: blogTO

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