Cost of living for Toronto homeowners skyrocketed by almost 60% in a year

A new study has been conducted focusing on the cost of living in Canada’s largest city. Based on the mortgage calculations, it looks like the costs for homeowners have risen by 58% in just one year.

As the average home price in Toronto home is $1,108,606, home buyers are facing an $886,885 mortgage after providing a 20% down payment. With the current best five-year fixed interest rate for uninsured mortgages (home price exceeding $1 million) of 4.99% and 30 years of amortization, monthly mortgage payments reach $4,728.

Plus home insurance of about $150-180 a month for a two-storey detached house, plus $500-550,  a month for property tax, $300-400 for utilities and we’ll have the costs of housing going up to a minimum of $5,678 a month.

However, it’s only about housing. If you have a car add another $500-700 and it doesn’t even include parking. If you calculate all the daily expenses (food, phone, internet, streaming services, entertainment) the total for new homeowners may reach $7,000-7,500 a month, or $84,000 annually. That will require a gross annual income of at least $120,000.

The issue concerns not only homeowners, as renters are also dealing with a 22% hike in the costs of living in Toronto.

Rents went up across Canada as demand is exceeding supply: an average rent rose by 10.8% to $2,004 in March, according to Rentals. Toronto’s average rent is even higher, with a one-bedroom costing $2,506 a month – it’s 22.2% more than a year earlier, the report says.