Quebec City would be the best city in Canada to save money to buy real estate, according to a study published Wednesday.
The survey, conducted by Money.ca, evaluated large Canadian cities according to the affordability of rent and the time needed to save for your mortgage.
Using data from Statistics Canada and the Canadian Real Estate Association (CREA), the authors were able to estimate the percentage of income allocated to rent and the time needed to save in order to have 10% of the cost of the property real estate requested by most banks when applying for mortgage loans for the purchase of real estate.
In Quebec, the average rent for a one-bedroom apartment is $911 per month and the average annual salary is $50,500, which allows residents to devote 21.65% of their income to housing, according to the study, while the national average is 34.5%.
The cities of Montreal and St. John’s occupy second and third place respectively in the ranking, with rent representing 26.3% and 27.74% of income.
Toronto is the worst city for those who want to save: in fact, tenants spend almost half of their income (48.55%) on their rent. The Queen City is closely followed by Vancouver (46.07%) and Halifax (40.99%).
Buy sooner
The study also shows that Quebec is also the ideal place to buy a property quickly: savings over 40.77 months (around three and a half years) would be sufficient to constitute the 10% contribution. .
In Regina, it’s more of an average of 42.39 months and in Winnipeg, around 49.17 months.
Unsurprisingly, it is the cities of Vancouver and Toronto that require the most time to save. In Vancouver, with an average salary of $44,200 and an average price of $1,193,808, it takes approximately 162 months (13 years and six months) to build up a 10% deposit. In Toronto it takes about 13 years and two months.
