It’s no secret that owning any piece of real estate in Toronto will cost you a pretty penny, but how much do you really need to earn to comfortably afford your shoebox in the sky? While the amount varies depending on its size and amenities, there’s no denying that an entry-level salary just won’t cut it.
Curiocity asked the experts at Strata.ca for their best estimate of the salary you’d need to earn for a one-bedroom condo in the downtown core. Their final answer? You’ll likely need a six-figure income.
They estimate a household income of roughly $106,000 to 108,000 for a purchase price of $533,000 with a $50,000 down payment.
“There are 1-bedroom condos currently selling for $510,000 – $530,000 in Toronto’s downtown core. These are smaller units ranging from 500-525 square feet with no parking,” Strata realtor Daniel Forte told Curiocity.
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“Monthly maintenance fees should be taken into account when budgeting for a new condo. If you’re calculating a monthly fee of $380, you may need to bump up your yearly income by several thousand dollars.”
However, if you’re lucky enough to get some help from your parents for a down payment, Forte said you can knock a few thousand dollars off of your household income.
“In a scenario where the parents are helping with a down payment, and you can produce 20% down ($106,400) — you may be able to get away with a household income of $102K to qualify for the same $533K purchase price including maintenance fees,” he said. However, Forte noted that the costs vary based on individual situations.
Other real estate experts have made similar estimates. CTV’s Chief Financial Commentator Patricia Lovett-Reid said recently that owning a Toronto home on a $75,000 income is impossible without help from your parents. In fact, she said you’d need to bring in about $200,000 annually to comfortably afford a $1 million house.
It may not be what you wanted to hear, but on the plus side, there are still so many pockets of Ontario with cheaper homes for sale and smaller living wage requirements than the big city.
