The Canadian housing market has been quite fortunate as of late, unlike our friendly neighbours to the south who are dealing with the repercussions of the worst housing crash in their history. Here in Canada, the average price of a home is $365,000, which is up 8.8% from a year ago1, indicating a very healthy housing market.
According to a 2011 report by CREA (Canadian Real Estate Association), the average house price in Ontario is $360,000. We’ll breakdown what a monthly mortgage would look like using current mortgage interest rates and the type of home you can get using the average ‘Ontario house price’ of $360,000.
The monthly payments work out to $1,483, with $5,200 going towards Ontario Land Transfer Tax
What kind of home can you get in…
Ontario’s Most Affordable City: Timmins 2
MLS®: 111513, 3 bedrooms, 2 bathrooms
This bungalow is 1550 square feet featuring cherry hardwood floors, a backyard deck, and heated flooring in the master bath. Perfect for a small family.
Ontario’s Most Expensive City: Toronto 2
MLS®: C2114815, 1 bedroom, 1 bathroom
This condo is 616 square feet and can be found on the 52nd floor with views of Lake Ontario. It is located in central downtown Toronto, only steps from the CN Tower. Perfect for a small person.
Timmins and Toronto are eight hours apart by automobile, and the difference in the type of housing is astounding. A total of 934 square feet separate the two housing markets for the same price. In Timmins, you could have a backyard deck, great for summer barbeques, versus a petite 22 square foot balcony in “T.O.”, although the view is fantastic.
The big difference between purchasing a home in Toronto and anywhere else in the province is the additional Land Transfer Taxes. The city of Toronto has a Municipal Land Transfer Tax in addition to the provincial fee. In this case, the municipal tax adds an additional $3,325 to the closing costs.
* As of July 15, 2011
1 According to the 2011 CREA report: http://www.livingin-canada.com/house-prices-canada.html
2 City affordability as determined by Moneysense: http://list.moneysense.ca/rankings/best-places-to-live/2011/Default.aspx?sc1=4&d1=a&sp2=1&eh=ch