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%).
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 a household 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," said the National Bank of Canada when the report was released last February.
We're still better than Toronto, though, where the average non-condo is $1,039,438. So at least there's that.