The average income you need to afford a home in the GTA or Toronto is understandably more than other regions in Canada. Lots of amenities and advantages exist to living in a neighborhood like those that comprise Etobicoke.

To buy a home in Etobicoke, income has a massive role to play in what you can afford. You can find affordable properties of different shapes and sizes in Etobicoke, however, perfect for everyone from those looking at buying an investment to use as a rental to Torontonians looking for a family home to settle down.

How much money you need to make to afford to buy an Etobicoke property is closely aligned with what rates are in the overall landscape in Toronto.

To Purchase A Home In Toronto, This Is What Your Annual Income Should Be

According to a report issued earlier this year by Zoocasa, for the average Toronto home, your annual income should be $168,712.

This number was arrived at based on calculating an assumed 20 percent down-payment, a 4.74 percent mortgage rate, and 30-year amortization, combined with median income data taken from the 2021 Statistics Canada census.

Can You Afford A Home In Etobicoke? Here’s The Honest Truth About How To Make It Happen

There is a lot working against someone trying to buy a home in Toronto with annual income less than that $168,000 barrier. That said, there are lots of strategies you can use.

For example, let’s say you want to buy a home with your partner. If you and they both make $84,000/year or above, you’ve crossed the minimum threshold for annual household income to be able to afford a home.

Secondly, the bigger your down-payment, the less of a mortgage you have to take. This is something to consider if you have the opportunity to minimize expenses and maximize what you put away for savings every month.

Lots of people living in Toronto will spend years living with family members or roommates at a reduced cost in order to pay off debts and accumulate the necessary savings to eventually buy a property. For most people, sacrifices have to be made to get there. Take any advantage or opportunity you can to save more money,

The beauty of Etobicoke real estate is that it’s not always as expensive as properties elsewhere in Toronto. It’s also very welcoming to all cultures and backgrounds, and there’s still access there to various other neighborhoods, activities, and amenities all over the Greater Toronto Area.

Looking for more resources to help you buy a home in South Etobicoke? Here are some more resources to get started:

Use A Mortgage Calculator To Determine What You Can Buy With Your Current Income

If you are not making $168,000 or above, the easiest way to determine what you can afford is to use a mortgage calculator.

A mortgage calculator will tell you everything you need to know about what you can afford, considering home price, interest rates, income, and more. Beyond the initial purchase, one must also factor in property taxes and the costs of upkeep.

It’s not cheap to own a home in Etobicoke or Toronto in general but the upside as an investment is definitely there. 

Are you looking to buy or sell Etobicoke real estate this year? Get in touch with Adrian + Andrea for help on how to maximize your sales price or get for yourself the best deal according to what your priorities and preferences are. Call us at (416) 319-6893 or email info@adrianandrea.com today!