How Long Will You Need To Save For A Downpayment?

Posted by John Sabia on Tuesday, December 22nd, 2015 at 4:59pm.

When it comes to purchasing a home for sale or condo for sale, one of the largest obstacles for many potential home-buyers; particularly younger buyers, is whether or not they have enough money in their savings for a sufficient down payment.Younger buyers in most cases have just started working, are saddled with student debt and haven’t had time to build up a nest egg.

A recent study conducted by Hanley Wood Data Studio looked at median household incomes as well as median home prices to see how long certain age groups may have to wait before they’ve saved enough money for at least a 10 percent downpayment on a purchase.

According to the study, as expected, 18-24 year olds will have to wait the longest. This age group on average should expect to wait 8.77 years before they’ve saved enough for a 10 percent deposit. Seniors were the next longest group with an expected wait time of 7.37 years. Buyers in the ages between 45 and 54 faired far better with an expected wait time of about 3.54 years to have saved enough money to afford a 10 percent downpayment on a median priced home. Read more here.

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John Sabia

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