What You’ll Need To Earn To Afford A Mississauga Home In 2019

Potential homebuyers must pay more to purchase a home in Mississauga in 2019. Average home values rose in all Mississauga neighbourhoods between January and October of 2018. Anyone looking to buy a new house in Mississauga must earn between $10,000 and $37,000 more in salary than they did in 2017 to qualify for the mortgage they need to make the purchase.

Homebuyers also face higher interest rates for borrowing money. Higher home prices and higher interest rates have made Mississauga real estate less affordable.

How Much More Will You Have To Earn?

Zoocasa, a Toronto real estate team, calculated how much more prospective homebuyers would have to earn using these assumptions:

  • The buyer makes a 20 per cent down payment;
  • The buyer takes out a 30-year mortgage
  • The buyer qualifies for their lender’s Prime Rate. The Bank Of Canada states 2018’s Prime Rate is 3.58 per cent, higher than 2017’s Prime Rate of 2.85 per cent

Carrying costs such as property taxes and utilities were not included in the calculations. The income needed to buy a Mississauga house varies if different assumptions are used to make the calculations.

In Mississauga’s most expensive locations, a prospective homebuyer must earn between $20,000 and $37,000 more than they earned in 2017 to purchase the same property. For example, if you earned $100,000 in 2017, you must earn between $120,000 and $137,000 in 2018 to buy in the most expensive Mississauga locations. A purchaser buying in one of Mississauga’s less expensive locations must earn $10,000 more than they did last year.

How Much More Must I Earn to Buy in Mississaugas Most Expensive Locations?

Zoocasa identifies neighbourhoods by postal code. Here, in order, are the five neighbourhoods requiring the greatest increase in your annual income from 2017 to purchase a property there:

  • Postal Code L5H: Glen Leven, Lorne Park, Lorne Park Estates
    • Average Home Price: $1,490, 831 (19 per cent rise from 2017)
    • Additional Needed Income: $37,245 (22 per cent rise from 2017)
  • Postal Code L5G: Mineola, Port Credit
    • Average Home Price: $1,212, 109 (13 per cent rise from 2017)
    • Additional Needed Income: $23,956 (16 per cent rise from 2017)
  • Postal Code L5K: Sheridan Homelands, Sheridan Park, Sherwood Forest
    • Average Home Price: $852,448 (21 per cent rise from 2017)
    • Additional Needed Income: $22,904 (24 per cent rise from 2017)
  • Postal Code L4Y: Dixie, Applewood
    • Average Home Price: $648,459 (27 per cent rise from 2017)
    • Additional Needed Income: $21,272 (31 per cent rise from 2017)
  • Postal Code L5M: Vista Heights, Streetsville
    • Average Home Price: $762,449 (21 per cent rise from 2017)
    • Additional Needed Income: $20,698 (17 per cent rise from 2017)

Prospective homebuyers must increase their 2018 income by an average of $25,215 above their 2017 income to purchase a house in these areas.

How Much More Must I Earn to Buy in Mississaugas Least Expensive Locations?

Even in less expensive locations, Mississauga real estate has significantly increased in value. Here, in order, are the three neighbourhoods requiring the least increase in salary to purchase a house:

  • Postal Code L5E: Glen Leven, Lorne Park, Lorne Park Estates
    • Average Home Price: $784,943 (7 per cent rise from 2017)
    • Additional Needed Income: $10,146 (10 per cent rise from 2017)
  • Postal Code L5B: Fairview, Cooksville
    • Average Home Price: $491,765 (14 per cent rise from 2017)
    • Additional Needed Income: $11,239 (16 per cent rise from 2017)
  • Postal Code L5V: East Credit
    • Average Home Price: $779,947 (8 per cent rise from 2017)
    • Additional Needed Income: $11,374 (10 per cent rise from 2017)

Even in these neighbourhoods, prospective homebuyers must increase their 2018 income by an average of $10,920 above their 2017 income to purchase a house in these areas.

If the neighbourhood where you would like to buy isn’t included in this post, the report can be found here.

Finding the ideal property to purchase is not easy. Consulting experienced real estate lawyers to assist you could be helpful, as they are aware of changing trends in real estate transactions in their area. Their knowledge could help you find your dream home.

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