Thirty years ago, Ron Butler entered the mortgage industry, reminiscing about the ease with which individuals like grocery store produce managers or part-time nurses could gather the five percent down payment required for a home purchase.
Butler recently expressed his thoughts at a parliamentary finance committee session focusing on household debt in Canada, highlighting the stark contrast in today’s housing market.
According to Butler, individuals with stable full-time jobs in the Greater Toronto Area face challenges in saving up for a house down payment due to high living costs and stagnant incomes.
He emphasized that with an income of around $110,000 to $115,000, meeting the down payment requirements for a home priced under a million dollars is nearly impossible.
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Prior to 2015, a family earning $115,000 annually had opportunities for homeownership in Ontario, albeit in locations like Ajax, Burlington, Hamilton, or the Niagara region.
However, the current housing landscape presents challenges, with a $115,000 income now insufficient to afford a home purchase, as per the Canadian Real Estate Association’s March 2026 data.
In the Greater Toronto Area and Greater Vancouver, where average home prices exceed a million dollars, the required down payments soar to approximately $76,000 and $95,000, respectively.
The issue extends beyond major cities like Toronto and Vancouver, affecting various regions across Canada and limiting housing accessibility for middle-income earners.
Mike Moffatt, the founding director of the University of Ottawa’s Missing Middle Initiative, highlighted the broader impact of rising housing costs and stagnant wage growth on Canadians.
‘Much more normal salaried people could buy houses 30 years ago…those days are gone,’ broker Ron Butler said. Butler spoke as a witness for the Standing Committee on Finance, which looks into matters relating to federal finances.
Analysis by CBC revealed that achieving homeownership in cities like Calgary, Montreal, and Ottawa requires significantly higher incomes due to escalating home prices and associated costs.
A recent report from the Missing Middle Initiative underscored the growing disparity between new home prices and household incomes in Canada, with starter homes becoming increasingly unaffordable.
The report also highlighted Canada’s sharp rise in home price-to-income ratios over the past two decades, indicating a challenging scenario for prospective homebuyers.
Butler emphasized that a significant portion of homebuyers in Ontario and British Columbia fall within the top income brackets or rely on parental assistance to bridge the affordability gap.
He noted the trend of parental support being crucial for individuals aiming to enter the housing market, especially in regions with exorbitant housing prices relative to incomes.
Butler illustrated
