With rents continuing to rise in Greater Montreal, the surge in the price of homes for sale shows no sign of stopping, leaving many budgets on a tightrope. With this trend set to be even more pronounced in 2025, it becomes relevant to know how much you or your household will need to earn to hope to become a homeowner in the metropolis soon.
In December, real estate agency Royal LePage released its estimates of the residential real estate market in the greater metropolitan area. In its latest report, the company forecasts that the median price of a single-family detached home could reach $750,780 by the end of 2025. This represents an increase of 7.5% for this type of property, compared to the end of 2024.
As for condos, the median cost is likely to rise to $507,210, an increase of around 6% between the last quarter of 2024 and that of next year.
What you need to know: The Government of Canada recommends not exceeding 35% of your gross income for rent-related expenses. Under these conditions, it is important to determine the annual salary that you or your household should earn on average to afford a house or condo in Greater Montreal at the moment.
Narcity Québec has carried out calculations taking into account standard mortgage conditions in Canada.
Here is the financial package for a single-family home at $750,780:
- Down payment: 5% on the first $500,000 and 10% on the remaining amount = $50,078
- Mortgage amount: $700,702
- Mortgage Payments : with a 5% interest rate and a 25-year amortization period, approximately $4,092 per month
- Debt ratio: 35% of annual gross income
- Annual gross income required: environ 140 670 $
Here is now the financial package for a condo at $507,210:
- Down payment: 5% on the first $500,000 and 10% on the remaining amount = $25,721
- Mortgage amount: $481,489
- Mortgage payments: with a 5% interest rate and a 25-year amortization period, approximately $2,808 per month
- Debt ratio: 35% of annual gross income
- Annual gross income required : environ 96 288 $
Please note that our calculations do not take into account the welcome tax, annual property taxes and heating costs.
In case you didn’t know: It is necessary to earn at least $59,348 per year to live in a 4 ½ in December in Montreal, according to the most recent data from the real estate rental platform liv.rent. However, this salary may be lower depending on the average price of this type of apartment in certain areas of the metropolis – you can consult our article on this subject here.
