If you’re considering buying a home in Canada, you’ve probably heard about the significant increases in prices over the last decade in many of the country’s major metropolitan areas. Because housing prices across Canada vary greatly from city to city, it’s important to research home prices in the areas you are interested in to determine what you can realistically afford. But how much does it cost to buy a home in Canada’s big cities? In this article, we’ll look at the home prices and associated costs in the four largest Canadian cities – Toronto, Montreal, Vancouver, and Calgary – and explore trends in each city over the last few years.
Toronto Home Prices
When it comes to home prices and cost of living in Canada, Toronto is one of the most expensive cities in the country. In 2020, the average price of a detached house in the city was $1,106,989; for condominiums, it was $624,139. That’s an increase of 6.5% year-over-year, which is lower than the rate of increase seen in 2019.
Current Home Prices By Type
When purchasing a home in Toronto, you’ll be looking at some of the highest prices in the country. Here’s the average cost of house types in the city in 2020:
• Detached: $1,106,989
• Semi-detached: $810,703
• Townhouse: $691,625
• Condo: $624,139
Other Expenses
In addition to the cost of the home itself, there are a few other important expenses to take into account. For starters, buyers need to pay land transfer tax, which is based on the value of the property. Land transfer tax rates in Toronto vary depending on the purchase price; additional information is available on the city’s official website.
In addition, buyers can expect to pay a few other fees, including:
• Mortgage fees (origination fees, processing fees, appraisal fees)
• Inspection fees
• Home insurance (usually around 0.7% of the purchase price)
• Legal fees
• Moving costs
Overall, buyers can expect to spend about 1.8% of the cost of the house in additional fees and expenses.
Price Trends
Over the past five years, the average price of a detached house in Toronto has increased by approximately 55%, from $795,822 in 2015 to $1,106,989 in 2020. Prices of other housing types have also seen increases over this period of time. Condos, in particular, have become increasingly in demand due to their lower cost and convenience. As a result, condo prices in Toronto rose by 55.3% over the past 5 years and now stand at the highest level ever.
Montreal Home Prices
Home buyers looking to move to Montreal should expect slightly lower home prices than in Toronto. In 2020, the average price of a detached house in Montreal was $616,347; for condominiums it was $527,249. That’s a year-over-year increase of 6.7%.
Current Home Prices By Type
Montreal has some of the lowest home prices of any major Canadian city. Here’s jthe average price for various types of homes in Montreal in 2020:
• Detached: $616,347
• Semi-detached: $459,677
• Townhouse: $389,767
• Condo: $527,249
Other Expenses
In addition to the cost of the home itself, buyers should be prepared to pay a few other fees when buying in Montreal. These include:
• Mortgage fees (origination fees, processing fees, appraisal fees)
• Land transfer tax (this varies based on the purchase price; additional information is available on the city’s official website
• Inspection fees
• Home insurance (typically around 0.7% of the purchase price)
• Legal fees
• Moving costs
Overall, buyers should expect to pay an additional 1.7% of the cost of the house in additional fees and expenses.
Price Trends
Over the past five years, the average price of a detached house in Montreal has increased by 41.3%, from $438,289 in 2015 to $616,347 in 2020. Condo prices have also seen significant increases, rising by 43.4% over the same period of time.
Vancouver Home Prices
Vancouver has the highest home prices in the country, and the city (along with Toronto and Victoria) has been identified as having the largest gap between median incomes and median house prices. In 2020, the average price of a detached house in Vancouver was $1,595,721; for condominiums it was $745,990.
Current Home Prices By Type
Vancouver is the most expensive city to buy a home in Canada. Here’s the average cost of house types in 2020:
• Detached: $1,595,721
• Semi-detached: $1,099,959
• Townhouse: $640,037
• Condo: $745,990
Other Expenses
In addition to the cost of the home itself, there are a few other important expenses you’ll need to take into account when buying in Vancouver. These include:
• Mortgage fees (origination fees, processing fees, appraisal fees)
• Land transfer tax (this varies based on the purchase price; additional information is available on the city’s official website
• Inspection fees
• Home insurance (typically around 0.7% of the house price)
• Legal fees
• Moving costs
Overall, buyers in Vancouver can expect to spend about 2.3% of the cost of the home in additional expenses.
Price Trends
Over the past five years, the average price of a detached house in Vancouver has increased by a staggering 78.9%, from $891,620 in 2015 to $1,595,721 in 2020. Condo prices have risen even more rapidly, rising 85.9% during this time period.
Calgary Home Prices
Home buyers looking to relocate to Calgary’s bustling downtown will find some of the most affordable housing prices in the country. In 2020, the average price of a detached house in Calgary was $446,237; for condominiums it was $271,228. That’s a year-over-year increase of 14.3%.
Current Home Prices By Type
Here’s the average price for various types of houses in Calgary in 2020:
• Detached: $446,237
• Semi-detached: $364,198
• Townhouse: $302,561
• Condo: $271,228
Other Expenses
In addition to the cost of the home itself, there are a few other important expenses to take into account when buying in Calgary. These include:
• Mortgage fees (origination fees, processing fees, appraisal fees)
• Land transfer tax (this varies based on the purchase price; additional information is available on the city’s official website
• Inspection fees
• Home insurance (typically around 0.7% of the purchase price)
• Legal fees
• Moving costs
Overall, buyers should expect to pay an additional 1.2% of the cost of the house in additional fees and expenses.
Price Trends
Over the past five years, the average price of a detached house in Calgary has increased by approximately 25.9%, from $354,749 in 2015 to $446,237 in 2020. Prices of other housing types have seen more moderate increases over this period of time.
Home prices across Canada vary greatly from city to city. In the four largest cities – Toronto, Montreal, Vancouver, and Calgary – prices range from expensive to very affordable. For example, detached houses in Toronto cost an average of more than $1 million, while in Calgary they cost around $446,000.
When considering buying a home in Canada, it’s important to do your research and understand the current market trends in the area you’re interested in. As you can see from the numbers above, current home prices in the major Canadian cities are higher than they’ve ever been. However, depending on the city, some forms of housing (such as condos) can provide a more affordable option.
Ultimately, the decision of where to purchase a home and for how much is a personal one. It’s important to keep in mind that there are additional expenses associated with buying a home (such as land transfer tax and inspection fees) that can add up quickly. Ensuring you have a full understanding of the market in the area you’re interested in as well as having a clear budget will help ensure you make a well-informed choice.
