The first step in your journey to becoming a homeowner is to get the money together for a down payment. In Canada, the minimum down payment you’ll need depends on how much the property costs. If it’s $500,000 or less, you need 5 percent of the purchase price. For over $500,000 and up to $999,999, you need 5 percent of $500,000 – that’s $25,000 – and an additional 10 percent of the portion of the price above $500,000. For a purchase price of $1 million or more, you need 20 percent. And these are just the minimums. If you’re self-employed or if you have a poor credit record, the lender may require a bigger down payment.
Considering that according to the Canadian Real Estate Association, the average house price in Canada in August 2022 was $637,673, which means an average minimum down payment of $25,000 plus 10 percent of $137,673, or $38,767 in total. Some people get that money as a gift from their parents, for instance, when they get married. Others inherit the funds or win the lottery or sell some stocks. Most of us, though, have to put away some money every month until we’ve saved up the amount.
How Much to Save for a House in Canada
There are several variables that can affect the time you need to get your down payment together: interest rates, a salary raise or a job loss, deciding to pool your funds together and buy with a partner or a friend or a family member, and changes in the housing market, among others.
Although each person saves differently, we got these stats by calculating 10 percent of a person’s monthly salary, using the salary averages as stated in the 2020 census. Then we compared these numbers to the average house price.
Read on for a basic ballpark figure of how long you’ll need to save for a down payment in these Canadian provinces.
British Columbia: Nearly 13 Years
Average House Price: $910,914
Minimum Down Payment: $66,091
You’ll need to save up for 12.7 years. Or about 12 years, eight months and three weeks.
If you earn an average income in British Columbia, your best option to become a homeowner may be to pool your money with others and buy a property together.
Let’s break down the finances:
- Average income: $51,900
- What to Save Each Month: $433
Alberta: Just Under Four and a Half Years
Average House Price: $423,879
Minimum Down Payment: $25,000
You’ll need to save up for 4.45 years. Or about four years, five months and two weeks. This is the shortest time needed to save up for all the provinces. If you can, set aside more each month for a bigger down payment. This way, you’ll have smaller mortgage payments, and if you then negotiate a fixed-rate mortgage, higher interest rates will have no effect on your monthly payments.
Let’s break down the finances:
- Average Income: $56,100
- What to Save Each Month: $468
Saskatchewan: Just Under Five Years
Average House Price: $334,100
Minimum Down Payment: $25,000
You’ll need to save up for 4.87 years. Or abou four years, 10 months and two weeks. Saskatchewan hasn’t seen a huge increase in house prices over the past year but is a good bet if you’re more interested in building equity than flipping your house for a quick buck. To find the cheapest houses for sale in an already cheap province, look further afield than Saskatoon and towards places like Prince Albert.
Let’s break down the finances:
- Average Income: $51,300
- What to Save Each Month: $428
Manitoba: Just Over Five Years
Average House Price: $344,237
Minimum Down Payment: $25,000
You’ll need to save up for 5.18 years. Or about five years, two months and five days. If you can work remotely, Manitoba’s Interlake Region is one of the most affordable places to buy vacation properties in Canada – and who doesn’t want a lake view from their home office?
Let’s break down the finances:
- Average Income: $48,200
- What to Save Each Month: $402
Ontario: Just Over 11 Years
Average House Price: $829,739
Minimum Down Payment: $57,974
You’ll need to save up for 11.03 years. Or about 11 years and ten days. If this is enough to make you want to cash it all in and go live in a cave, not so fast: While house prices in the GTA are insane, there are plenty of small and more remote Ontario towns where housing is still surprisingly affordable.
Let’s breakdown the finances.
- Average Income: $52,600
- What to Save Each Month: $438
Quebec: Just Over Five Years
Average House Price: $484,070
Minimum Down Payment: $25,000
You’ll need to save up for 5.17 years. Or about five years, two months and two weeks. Before you get your heart set on that gorgeous Montreal Victorian, be aware that unlike elsewhere in the province, average house prices in Montreal are over $500,000, which can add considerably to the down payment you’d need.
Let’s break down the finances:
- Average Income: $48,400
- What to Save Each Month: $403
New Brunswick: Five and a Half Years
Average House Price: $287,600
Minimum Down Payme: $25,000
You’ll need to save up for 5.5 years. about five years and six months. If you can put away more per month, though, you can get that down payment together faster. It will be well worth it: Moncton is one of the best places to live as a single woman in Canada and New Brunswick has some of the cheapest real estate in the country, so you may be able to buy that dream house all on your own.
Let’s break down the finances:
- Average Income: $45,500
- What to Save Each Month: $379
Nova Scotia: Nearly Five and a Half Years
Average House Price: $395,300
Minimum Down Payment: $25,000
You’ll need to save up for 5.44 years. Oabout five years, five months and a week. On average, homes in the Halifax–Dartmouth area are over $500,000. Instead, head to the countryside. On Cape Breton, for example, average homes are under $200,000.
Let’s break down the finances:
- Average Income: $45,900
- What to Save Each Month: $383
Prince Edward Island: Just Over Five and a Half Years
Average House Price: $372,700
Minimum Down Payment: $25,000
You’ll need to save up to 5.59 years. Or about five and seven months.
Prince Edward Islanders have the lowest average income in Canada but this doesn’t mean you need to give up your dream of home ownership if you live here. There are such cheap properties for sale in this part of the country that once you’ve made the down payment, you can pay off the rest in a jiffy – and you’ll own an island home.
Let’s break down the finances:
- Average Income: $44,700
- What to Save Each Month: $373
Newfoundland and Labrador: Just Over Five Years
Average House Price: $286,000
Minimum Down Payment: $25,000
You’ll need to save up for 5.3 years. Or about five years, three months and three weeks. Remember, though, that Newfoundland and Labrador leads the way in terms of cheap houses you can buy in Canada. That $25,000 down payment may even be a third of the total price, which means your monthly mortgage payments will be next to nothing.
Let’s break down the finances:
- Average Income: $47,100
- What to Save Each Month: $393
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