Canada: Down payment increases due to rising house prices

A recent report from the Canadian Real Estate Association has found that speedy house price growth means the average Canadian worker must save for 102 weeks before they will have enough for a deposit on an average Canadian house. Similarly, Mortgage Professionals Canada, the industry association for mortgage brokers in Canada, has found that it would take an average income earner twice as long to save a deposit for an average house as it would have 15 years ago.
Paul Taylor, President and Chief Executive Officer (CEO) of Mortgage Professionals Canada, stated, “The math quite simply says incomes have not risen at all in comparison to house prices. It’s taking longer and longer for those first-time buyers to amass the means for a down payment.” He also mentioned that first-home buyers can’t save everything each paycheck, while others do not make the average wage, meaning it can take much longer for them to save. This is particularly the case in Toronto and Vancouver, where there have been rapid house price increases. 
RFi Group data on the Canadian Priority & Retail Banking shows that the proportion of consumers who do not see themselves buying a property in Canada for the foreseeable future was 35% for 18-24 and 41% for 25-29 years old at the end of 2015.  With property prices continuing to rise, this proportion is likely to have increased in 2016.
 

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