Townhouse down payments have climbed over $20,000 in 5 years in Hamilton and Burlington
Published October 20, 2023 at 12:26 pm
If you want to purchase a townhouse in Hamilton or Burlington, you probably won’t be surprised to hear that the minimum down payment for the average home has risen over $20,000 since 2018.
That said, the price growth for the housing type is quite dramatic compared to other Canadian regions.
According to a recent report by real estate website and brokerage Zoocasa, the average benchmark townhouse price in Burlington-Hamilton (the data for the two cities is combined) was $446,100 in September 2018, meaning prospective buyers could expect to put a minimum of $22,305 down.
A minimum down payment is typically five to 20 per cent of the purchase price, depending on the cost of the home.
In September 2023, the benchmark price of a townhouse climbed to $731,300, meaning the minimum down payment (10 per cent of purchase price) grew to $48,130–a $25,825 difference.
Other areas that experienced a significant increase in townhouse prices and down payments include Victoria, B.C., Fraser Valley. B.C., the GTA and the Greater Vancouver Area.
The report says that while interest rate hikes have cooled the market in many parts of the country and put a noticeable dent in sales, properties are still more expensive than just five years ago.
“As the pandemic and rate hikes have warped the landscape over the last few years, many cities have surged in price, making buying a home vastly more difficult,” the report reads.
In terms of price growth, Hamilton-Burlington has seen some of the steepest townhouse price increases.
“Out of the  cities analyzed, the majority of these markets experienced increases of less than $20,000 in their required down payments. Six cities had down payment increases of less than $5,000, showing how varied price growth can be in Canada’s real estate market,” the report reads.
Cities with the smallest changes in minimum down payments include Regina (an increase of just $295) and Edmonton (a $415 increase).inthehammer's Editorial Standards and Policies advertising