This is how long you'll have to save to afford a down payment on a Toronto house

If you’re planning to buy a home in Toronto anytime soon, you could be saving for longer than expected.
According to a new study by The National Bank of Canada (NBC), the cost of down payments in Canadian cities skyrocketed in 2021.
The study examined housing and mortgage trends in 10 cities across the country and found that during the second quarter of 2021, housing affordability has worsened by the widest margin in 27 years.
Currently, to save up for a down payment for an average Canadian home, buyers would have to save at a rate of 10 per cent for six years — or 69 months.
But in Toronto, where the average home costs approximately $1.2M, the time period required to save for a down payment is much longer.
In order to save enough money for a down payment for a home in Toronto, a resident making a yearly salary of $196,913, saving at a rate of 10 per cent, would have to do so for 26.5 years — or 318 months.
To afford a condo in the city under these circumstances, it would take just under five years, or 56 months.
Meanwhile, median household income in the city only rose by a slight 0.9 per cent in 2021, according to NBC, “[failing] to offset the effect of these higher prices.”
According to StatCan's latest data, the 2019 median salary for individuals in Toronto aged 25-54 years was $60,300.
NBC’s study listed data for the Ontario cities of Ottawa/Gatineau and Hamilton, as well.
In Ottawa/Gatineau, it would take a little over four years to save up for a home down payment, if you’re saving at a rate of 10 per cent while making a salary of $124,891.
If you’re saving at the same rate in Hamilton, where the household salary needed to afford the representative home is $165,922, it would take six and a half years, or 78 months, to secure a down payment.
JULY HOUSING SALES IN TORONTO DOWN
The Toronto Regional Real Estate Board (TRREB) recently said that housing demand in the city dropped in July, compared to the previous year, but still remains above average for the season in 2021.
According to the board, nearly 9,400 home sales were reported in July, down 14.9 per cent compared to July 2020, which set a record for housing sales in the summer month.
Additionally, the board says the city’s housing market tightened in July, with the month's sales accounting for a greater share of listings compared to July 2020.
It says the average price for all home types combined was just over $1M, up 12.6 per cent compared to a year ago.
With files from The Canadian Press.
CTVNews.ca Top Stories
Defence minister says Canada supports U.S. downing of Chinese balloon
The federal defence Minister says Canada 'unequivocally supports' the United States government's decision to shoot down a high-altitude surveillance balloon that was suspected of spying for China, noting the balloon violated Canadian airspace.

U.S. downs Chinese balloon, drawing a threat from China
The U.S. military on Saturday shot down a suspected Chinese spy balloon off the Carolina coast after it traversed sensitive military sites across North America. China insisted the flyover was an accident involving a civilian aircraft and threatened repercussions.
Former Israeli PM: Putin promised not to kill Zelenskyy
A former Israeli prime minister who served briefly as a mediator at the start of Russia's war with Ukraine says he drew a promise from the Russian president not to kill his Ukrainian counterpart.
New study highlights increasing prevalence of muscle dysmorphia among Canadian boys, young men
Canadian researchers are drawing attention to the increasing prevalence of 'a pathological pursuit of muscularity' among Canadian boys and young men, with a new study that found one in four were at risk of developing what's known as muscle dysmorphia.
Justice minister open to amending bail laws, OPP commissioner says change 'needed now'
Justice Minister and Attorney General David Lametti says he is open to amending bail laws, which have come under increased scrutiny following the shooting death of an Ontario Provincial Police officer.
China says it strongly opposes U.S. move to shoot down balloon
China's foreign ministry said on Sunday that it expressed strong dissatisfaction and opposition towards the United States' use of force to attack its airship.
Poor oral health could affect the brain later in life: early study
An early study has shown keeping your gums and teeth healthy may have added benefits for your brain health.
'It's devastating': Homeless Canadians at risk as Eastern Canada endures extreme cold, advocates say
As the majority of Eastern Canada stays indoors during an extreme cold weather alert, homeless shelters are struggling to keep up with the demand from unhoused people as temperatures continue to drop.
Extreme cold can bring frostbite and hypothermia. Here are the symptoms to watch for
Canadians will continue to bundle up in the country's east this weekend as a recent bout of extreme cold persists in much of Quebec and the Atlantic provinces. CTVNews.ca looks at the signs and symptoms for frostbite and hypothermia to watch for if exposed to extreme cold.