If you’re like most Canadians, chances are you’d love the opportunity to live and invest in a single-family home. In addition to the peace of mind that comes with owning your own property, there’s no denying that having additional space for features like a functional kitchen, a dedicated home office, a spacious playroom for your kids, or a backyard for your pets, can bring you and your family a lot of joy and comfort. 

In this study, Zoocasa analyzed housing markets in 20 major cities across Canada, calculating the required down payment for each. We then determined how long it would take for a median, post-tax income household to save for the minimum down payment on a single-family home, using Statistics Canada data, and assuming a savings rate of 6.2% of their annual income. This savings rate was sourced from Statistics Canada’s Q4 2023 household savings rate.  Furthermore, mortgage calculations assumed a 25-year amortization period and a fixed 5-year mortgage rate of 4.84%.

Regina and Thunder Bay: Where Home Dreams Come True Without Breaking the Bank

In Regina, you can turn homeownership dreams into reality faster than anywhere else in Canada. With just two years and two months of saving, a household earning the median income may be able to secure the minimum down payment for an average single-family home priced at $282,961.

And when we talk affordability, Regina truly shines. Its housing market offers some of the most budget-friendly options nationwide, with prices a staggering 57% below the national benchmark. Plus, with a median post-tax household income of $79,000—8% higher than the national average—living in Regina means you’re getting a great deal while still earning more than some other Canadians.

Of all the markets we analyzed, Thunder Bay has the most affordable homes, boasting an average price of just $264,538. This represents an impressive 60% lower than the national average. By setting aside around 6% of your salary, you’ll be ready to make the minimum down payment in three years. 

Where You Can Save for a Home in Canada in Less Than Five Years

Saint John is the third most affordable destination for saving towards a single-family home on a median post-tax income. Securing a single-family home in New Brunswick’s capital requires just three years and four months of saving on the median income. Despite the median income of $56,000 being 23% lower than the national median income, substantial savings opportunities exist in the housing market, with prices still 52% lower than the national average.

Meanwhile, Edmonton and Saskatoon require just under five years of savings for a down payment. Edmonton boasts a median salary of $80,000, significantly higher than the national median income. The best part is that a single-family home in Edmonton averages $389,896, which is 40% below the national average. The high salaries and low home prices allow many people to have the opportunity to own a home in the beautiful city. 

With an average income of $75,000, Saskatoon provides an optimistic outlook for homeownership. Saving $3,825 annually, it takes just four years and seven months to save for a home priced at $355,885 – the second most affordable city in Saskatchewan. The minimum down payment is $17,794, making homeownership in Saskatoon accessible and promising. 

In our analysis, we’ve identified six cities where saving for a home typically takes five to ten years. All offer prices below the national average benchmark. For instance, at the four-year and two-month mark, Winnipeg stands out with an average single-family home price of $373,023, nearly aligning with the national benchmark and trailing the median post-tax salary by just $1,000. The advantage here is that purchasing a home in Winnipeg remains 43% less expensive than the national average, requiring a down payment of $18,651. 

In Calgary, the average price of a single-family home is $582,591, requiring a down payment of $33,259. To accumulate the necessary funds, you’ll need to save diligently for 6 years and two months, even with a median post-tax salary that exceeds the benchmark by 19%. The good news is that Calgary homes remain 12% more affordable than the national average.

Meanwhile, prospective buyers eyeing single-family homes in London and St. Thomas will find prices 8% below the national average. Saving for the required down payment of $35,559 on a median household post-tax income of $71,000 will equate to just over 8 years and one month.

Saving for a Down Payment in Ontario and British Columbia

It’s worth noting that there are competitive markets for single-family homes in Canada, particularly in Ontario and British Columbia. For example, in the Hamilton-Burlington region, a person will require just a little over 12 years to save a minimum down payment of $57,055. Following a similar savings plan of 6% of median post-tax income in Greater Toronto will mean it will take 39 years to save a minimum down payment of $205,341. 

British Columbia is the most expensive market by province, with markets such as the Fraser Valley (41 years and eight months) to save a whopping minimum down payment of $201,936. Among all markets analyzed, Greater Vancouver presents the most prolonged saving timeline, taking a whopping 50 years and six months of savings for a significant down payment of $250,980.  

Thankfully, you don’t have to postpone homeownership until these retirement ages, even in provinces with a higher price tag for single-family homes. Residents in British Columbia and Ontario should consider a strategic approach to saving for bigger down payments. 

To illustrate, exploring opportunities in smaller cities, away from bustling downtown cores, is a practical approach for those working remotely, where investing in a condo or attached townhome becomes more feasible. Or if you’re single, pooling resources to buy a property with a sibling or friend to build equity and save for down payment funds faster.

Zoocasa(March 1, 2024, Angela Serednicki)