The city of Toronto has become a popular destination for a large number of people. As a result of the high demand for housing, the average price of a house in Toronto will have risen to $1.5 million by the end of 2023.
It is not possible with a yearly salary of $75,000 dollars. Even if you are willing to pay the monthly mortgage payment and the service fee, you will struggle to cover your daily expenses. If you use logic here, it would take $200,000 in annual income to pay off a $1 million dollar house loan.
The reason behind this rise in the housing market is mainly due to the following factor
How the Greenbelt is affecting the housing market in Greate Toronto Area
The greenbelt is a large area of protected land that surrounds Toronto, and it has been impacting the housing market in different ways. The most obvious impact is on home prices, which have increased by as much as 40% over the past two decades. This also means that people are not able to move into bigger homes and build their families because of the high price tag associated with them.
The greenbelt also impacts new home construction, which has decreased by more than 50% since 2000 because of a lack of available land for development. This means there are fewer new homes being built and fewer opportunities for young people to get into the market and start building their families.
How am I supposed to afford a house in Ontario?
Looking at the stats above, it’s safe to say that only 10% of the Canadian population can afford to stay in cities like Toronto and Vancouver. Unless you fall under that 10%, you should have a realistic idea of how much you can spend.
There are different types of houses available at an affordable price. Your best bet would be to look for houses outside the major city areas.
Before I get to that, make sure you are aware of the following.
- A credit card score is required when purchasing a home in Canada. If you bought the credit card in the names of you and your spouse, it would be simple to get a mortgage loan from the lender. This is because the lender will check both partners’ credit scores before approving the loan.
- It would be ideal to pay at least a 20% downpayment to avoid paying high insurance rates ranging from 1.80% to 4.00%.
- As part of the property’s closing costs, you must pay administration and legal fees.
- The government of Canada supports first-time home buyers.
Useful info: 7 tips for buying a house in Canada for dummies
Now that you are aware of the basic information, we can start talking about house affordability.
These are some of the most affordable neighborhoods for purchasing properties.
1. Scarborough
Scarborough is a popular destination for Toronto’s many residents. It’s known for its diverse culture and food scene, which makes it a great place to live. Some of the affordable areas here are
- West hill (Avg price $753,000)
- Morning side (Avg price $685,000)
- Eglinton east (Avg price $628,000)
- Malvern (Avg price $602,000)
- Dorsett Park ( Avg price $590,000)
2. East York
East York is a neighborhood in Toronto, Canada. It is located east of downtown Toronto and north of the Don River. The neighborhood has a population density of 9,939 people per square kilometer (25,000/sq mi).
Purchasing a house in East York can be an exciting experience. When you are looking for your dream home, you can find many houses that are available for purchase or rent. If you are looking for houses near public transportation, then East York might be the place for you.
The average price of houses in East York ranges from $365,000 to $1,500,000. The median price of a house in East York is $633,500.
Cities in Ontario with affordable housing prices
Pickering
Pickering, which is east of Toronto, is a popular place to live for people who want to save money.
Pickering real estate prices range from $631,000 to $741,000, a far cry from Toronto’s average prices, which are expected to exceed $1 million by 2021.
Pickering’s cost of living is also much lower than that of Toronto, ranking only 5% higher than the national average (compared to Toronto’s 29%). That’s not bad for a city only 30 minutes from Toronto!
Windsor
if you go to Windsor, you will undoubtedly find some of the most affordable real estate in Ontario. This city is in the southwest corner of the province, near the border with the United States. Because Windsor is so close to Detroit, many residents commute there for work. The average home in Windsor costs $363,521. With these housing prices, Windsor has become one of the most affordable cities in Ontario.
Aside from being one of the cheapest places to live in Ontario, Windsor has a number of other advantages. One of them is the University of Windsor, which is ranked as one of the best post-secondary institutions in the country. In addition, there are a lot of festivals, museums, gardens, and a beautiful view of the water in Windsor.
Thunder Bay
Thunder Bay is a small city in Northwestern Ontario that is ideal for anyone who enjoys lakefront living. This is the ideal location if you want to combine the beauty of rural areas with the fast-paced environment of the city. Thunder Bay is also one of Ontario’s most affordable cities. That is why many first-time buyers choose to buy a home in this area.
The average home in Thunder Bay costs $217,745. However, if you are a young couple, you may want to purchase something smaller. The good news is that if you want to live in the city center, an apartment will only cost you $5,489 per square meter. This city is not only the cheapest place to live in Ontario, but it also has an abundance of job opportunities.
Conclusion
The cost of living in Ontario is high and the average income is low. That’s why it’s important to save money before buying a house. In time, you will be able to buy a house that suits your needs and budget.
It is also important to know what you can do for the purpose of saving money in order to buy a house. Check this blog out to learn a few hacks to save money to buy a house