Young people have to save for 15 years to make a down payment in Montreal

Young Generation Z’s hoping to become homeowners should start saving… and it’s urgent! To be able to buy in Montreal, it could take them about fifteen years to raise enough money to make a down payment, a study shows.

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A prospective buyer aged 15 to 24 who earns $18,879 a year would need to spend 20% of their monthly income for 14.8 years to be able to accumulate a down payment of $55,775, according to calculations made by Point2.

The authors of the study assumed that the buyer would put down a payment of 20% of the purchase price of the property, the minimum amount to avoid mortgage loan insurance from the Canadian Mortgage Company (CMHC).

Point2 also determined that the price of a first home is equal to half the average price of a property in every city surveyed.

In Montreal, we are talking about $278,875, a price that allows you to get a one or two bedroom condo. in neighborhoods like Ahuntsic-Cartierville, Pointe-aux-Trembles and Côte-Saint-Luc.

For a property priced at $258,187 in Laval, it will take a person in the same age group 13.2 years to collect the down payment of $51,637.

In Gatineau, it is possible to set aside the required down payment of $43,392 in 10.4 years.

Quebec has the shortest accumulation time: in 7.8 years, a young person will be able to save $33,988 for a property.

As consumers get older and their incomes increase, the time it takes to save a down payment decreases.

Therefore, Montrealers aged 25 to 34 need 6.3 years to accumulate the same amount, while those aged 35 to 44 take more than 5 years.

Up to 40 years in Ontario

People aged 15 to 24 in Markham, in the Greater Toronto Area, need to save for 40.2 years for a down payment of $133,450, as the average price of a first home is $667,250.

This period drops to 15 years for people aged 25 to 34 as their wages are more than twice as high as the previous generation.

In Vancouver, British Columbia, it will take a young Gen Z 32.7 years to collect $129,096 for a property that has an average price of $645,481. A young millennial between 25 and 34 will save this amount in 12.6 years.