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Real Estate News

You Now Need a Minimum Down Payment of More Than $400,000 for a House in Toronto

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It will now require a minimum down payment of $359,441 to buy a detached home in the Greater Toronto Area (GTA). And if you’re looking to reside in Toronto proper, this figure jumps to a cool $414,798. 

Last week, the Toronto Regional Real Estate Board (TRREB) released its latest figures for the GTA. 

And, frankly, they’re so dismal for would-be first-time homebuyers in the increasingly unattainable region that it’s understandable if they stop paying attention to them all together. 

For those in the dark (perhaps blissfully so), the GTA saw another month of double-digit price increases. The average price for a home in the region has officially climbed to a tough-to-swallow  $1,334,544 — a year-over-year increase of 27.7%, and up 7.3% month over month.

TRREB
‘@iflygta/Instagram

The average price of a single-family detached home in the GTA climbed 31% to $1,797,203 overall, and has officially hit the $2M-mark in the notoriously pricey City of Toronto, at $2,073,989 (up 23%). Meanwhile, the average price for a semi-detached home in the GTA is now $1,358,415 (up 29.6%), and $1,499,489 in Toronto (up 14%). 

The total average price for a townhouse in the GTA is now $1,121,641 (up 30.5 %) and $1,131,809 in Toronto (up 22.8%). Finally, the total average price for a GTA condo hit $799,966 (up 24.6%) and $822,090 in Toronto (up 21.5%). 

So, how much will you need on the down payment front? We’ve broken it down for you (as for the down payment, we can’t help you there): 

Detached home in the GTA:

With 20% down: $359,441
With 25% down: $449,301
With 30% down: $539,161
With 35% down: $629,021

Detached home in Toronto:

With 20% down:  $414,798
With 25% down:  $518,497 
With 30% down:  $622,197
With 35% down:  $725,896

Semi-Detached home in the GTA:

With 20% down: $271,683
With 25% down: $339,604
With 30% down: $407,525
With 35% down: $475,445

Semi-Detached Home in Toronto:

With 20% down: $299,898
With 25% down: $374,872
With 30% down: $449,847
With 35% down: $524,821

Townhome in the GTA:

With 20% down: $224,328
With 25% down: $280,410
With 30% down: $336,492
With 35% down: $392,574

Townhome in Toronto: 

With 20% down: $226,362
With 25% down: $282,952
With 30% down: $339,543
With 35% down: $396,133

Condo in the GTA:

With 6.87% down: $54,997
With 10% down: $79,997
With 15% down: $119,995
With 20% down: $159,993

Condo in Toronto:

With 6.87% down: $57,209
With 10% down: $82,209
With 15% down: $123,314
With 20% down: $164,418

With these figures, it’s not surprising that more and more people are turning to the bank of the parents to foot the down payment tabs. Let’s not forget that the pre-pandemic rental market — which was heading in the direction of Manhattan — made it a challenge to watch that down payment fund grow significantly.

“We have seen a slight balancing in the market so far this year, with sales dipping more than new listings. However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow,” says TRREB Chief Analyst Jason Mercer. “Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they re-situate themselves in the market.”

So, the reality is that prices won’t drop any time soon.

With no sign of a bubble burst in the future, the answer lays in increasing supply. While nobody seems to agree on the best way to do so, the silver lining with the release of these stats lays in the fact that all options are on the table to increase housing options — and quickly.

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