It’s no secret that buying property is a pretty big investment. And over the last couple of years, that’s become truer and truer when it comes to Montreal real estate. So you may be wondering: how much do you need to afford a house in Montreal?
A study conducted by the National Bank of Canada found that the price of non-condo homes went up 6.6% in the last quarter of 2020, while the price of condos went up by 3.5% (median of 6.1%).
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AVERAGE INCOME PER YEAR TO AFFORD A NON-CONDO
Based on the research, the “representative home in the market” is $446,648 for a non-condo and $332,230 for a condo.
And just how much of an average household income does that translate to?
For a non-condo, you’d need an average income of $91,083 per year, plus 39 months of saving for a down payment and for a condo, $67,750 per year, requiring 29 months of saving, as per the findings, considering a 10% saving rate.
The study did show that mortgage payment as a percentage of income (MPPI) differs for both groups. For non-condos, the percentage amounted to 31.3% of the income and for condos, the percentage was 23.3%.
But don’t worry, things aren’t looking that great across the board, either. “At a national level, there has never been a worse time to accumulate the minimum down payment,” says the National Bank of Canada.
We’re still better than Toronto, though, where the average non-condo is $1,039,438. So at least there’s that.