Accessing the property has never been so difficult. Given that the eligibility rate has risen by 2% and the introduction of the new test of financial resistance, it is not surprising that those who earn the minimum wage believe that home ownership is impossible. However, the impossible can become reality with time and savings, depending on the province.
After all, in 2015, 25% of Canadians earned less than $ 15 an hour. According to the 2016 Census, Canada has a population of more than 35 million. That means almost 9 million Canadians earned less than $ 15 an hour. In addition, the homeownership rate in Canada was 67.8% according to the 2016 Census.
As of June 1, 2018, the average national minimum wage in Canada was $ 12.09; the highest minimum wage is $ 14 per hour in Ontario, while the lowest minimum wage is $ 10.96 per hour in Saskatchewan.
Save money for a down payment
If we take a worker with a full-time job and work 37.5 hours a week, his weekly earnings based on the average national minimum wage would be $ 453.37. Annually, this would represent revenues of $ 23,575.50. Let’s look at some provincial capitals to determine the time needed to save money for a down payment, admitting that the worker is renting a one-room apartment and has to pay $ 575 for living and utilities.
* The average rent comes from Padmapper in June 2018 * Average cost of housing in June 2017
* Source deductions are not included in calculations * Down payment does not include required closing costs
* These calculations do not take into account mortgage eligibility, only the time required to save for the down payment