Earning $100,000 a year may sound like a solid financial footing, but in today’s Canada, it doesn’t stretch as far as it once did, especially when trying to save for a home. With rising property prices and the cost of everyday essentials climbing too, many Canadians are finding it harder to get ahead, even on six-figure incomes.
For many high earners, reaching a 20% down payment on a home isn’t as easy as their salary might suggest. Even someone making $100,000 a year and saving 20% of their after-tax income (roughly $14,000 annually) could need more than a decade to afford a down payment in major metropolitan markets. And that estimate doesn’t include the rising costs of essentials like rent, groceries, and transportation, which make consistent saving even harder. To better understand the scale of the challenge, Zoocasa analyzed how long it would take a $100,000 earner to save a minimum and a 20% down payment.
Is Alberta as Affordable as it Seems?
Alberta has traditionally been viewed as a refuge for homebuyers priced out of British Columbia and Ontario, but that opportunity is starting to diminish, particularly in Calgary. For someone earning $100,000 a year, it would take approximately nine years and six months to save for a 20% down payment. According to CREA, Calgary’s average home price increased 63.4% from May 2020 to April 2025, pushing the 20% down payment from $71,441 to $116,680.
Long-time Calgarians have witnessed a dramatic shift in their city’s housing landscape. As Calgary’s population grows rapidly, demand for housing has surged, while supply struggles to keep pace. This imbalance has driven up prices, transforming a city known for its relative affordability. For many Calgarians, the housing situation has become a significant source of stress, with 28% expressing concern about their current circumstances, according to a city-specific 2024 Quality of Life report. This stress often impacts entire families across generations, as many parents are stepping in to assist their adult children with housing costs.
Among households earning less than $120,000 annually, 23% financially support their adult children. This number increases to 54% among higher-income households, indicating that even those with more financial resources are feeling the pressure to help the next generation secure a place to live.
The Quality of Life report also found that young Calgary homeowners struggle to make ends meet. Sixty percent of homeowners between the ages of 25 and 34 have made personal or financial sacrifices to keep up with their mortgage payments. Edmonton remains more attainable, with a six-year and seven-month timeline, but how long it stays that way is uncertain.
Generational Wealth Is Filling the Gap
After all, it’s easy to see how unaffordable British Columbia and Ontario have become in the past decade. According to a 2024 survey by CIBC, first-time homebuyers in Canada’s least affordable provinces increasingly turn to family gifts to bridge the growing affordability gap. In these two provinces, 36% of first-time buyers received financial gifts to help purchase their homes, five percentage points above the national average. The amount of these financial contributions themselves reflects the sharp differences in regional housing prices. In BC, where home values are among the highest in the country, the average gift to a first-time buyer reached a staggering $204,000. In Ontario, that figure stands at $128,000.
While these gifts help soften the impact of housing inflation for recipients, they also highlight a deeper issue: the growing divide between those who can access family wealth and those who cannot. As CIBC notes, this trend accelerates the widening wealth gap across the country.
Without financial help from parents or family, saving for a home in Canada’s most expensive markets with a $100K salary can take over ten years. In Greater Vancouver, it would take a buyer 17 years and 3 months to save a 20% down payment of $247,998.
Meeting the Bottom Line in B.C.’s Housing Market
A 2024 study by the BC General Employees Union found that half of renters and homeowners, regardless of income, spend more than 30% of their earnings on housing, up 11% since 2022. Even among those earning $100,000 or more, rising costs erode financial flexibility and make it harder to stay rooted in their communities. With 27% of renters forced to leave their neighborhoods in the past five years and only 17% confident they could afford a similar home nearby if they had to move, it’s clear that high earners are not immune to today’s affordability challenges.
Even for high earners, a 20% down payment can take time. Many Canadians face ongoing financial pressures (from rising living costs to student debt), which make it harder to set aside considerable savings. For those looking to buy in Greater Toronto, it would take 15 years and 7 months to save $218,651. And in more affordable Ontario markets like Ottawa, Kitchener–Waterloo, and the Niagara Region, it can still take nine to eleven years without outside financial help.
Atlantic Affordability Slipping in Urban Centres
Meanwhile, in Atlantic Canada, affordability remains relatively better than in many parts of the country. Still, rapid price growth is beginning to erode that advantage, particularly in urban centres like Halifax. Once known for its accessible housing market, Halifax now has an average home price of $601,000, requiring over nine years of saving for a 20% down payment on a $100,000 salary. Despite its smaller population, Prince Edward Island has seen significant price increases driven by interprovincial migration and limited housing supply. In cities like Charlottetown, average home prices are nearing $400,000, pushing the savings timeline to around six to seven years for $100k earners.
More affordable markets like Saint John, NB, and St. John’s, NFLD still offer purchase opportunities in the $300,000–$350,000 range, allowing buyers to save for a down payment in as little as 5 years. However, these timelines may not hold for long, as population growth, constrained supply, and rising rents continue to pressure affordability across the Maritime provinces.
Food Insecurity Signals Deeper Financial Stress
One indicator of unaffordability is the rising food insecurity happening across Canada. According to Statistics Canada, a new record high of 25.5% of people in the ten provinces lived in a food-insecure household in 2024. Nova Scotia (29%) and Prince Edward Island (28.6%) reported the highest food insecurity rates, underscoring the growing number of Canadians struggling to afford enough to eat. Although this does not necessarily mean that a person earning a $100K salary would struggle to afford enough groceries for themselves and their families, there is likely a connection between struggling to put food on the table and other forms of debt. After all, a 2025 Ipsos survey found that more than one in three Canadians earning $100K+ reported needing help getting out of debt.
High Earners Still Struggling With Housing Costs
Even for those earning six figures, saving 20% for a down payment can be challenging. According to another Statistics Canada report, 45% of Canadians are concerned about housing affordability, and 35% report difficulties covering essential costs like housing, food, and transportation. As reported by TransUnion, many also carry financial obligations such as $4,681 in average credit card debt and $30,600 in student loans after a bachelor’s degree. With these pressures, reaching a 20% savings target may be more difficult than expected.
The Lasting Impact of a 20% Down Payment
The difference between a 20% down payment and the minimum required down payment on a home significantly affects both upfront costs and long-term affordability. In Canada, the minimum down payment is 5% for homes under $500,000, increasing for homes priced between $500,000 and $1.5 million, and a 20% down payment is required for homes over $1 million.
Choosing the minimum down payment reduces initial costs but results in a larger mortgage and mandatory mortgage insurance through the Canada Mortgage and Housing Corporation (CMHC), leading to higher overall loan costs. On the other hand, a 20% down payment eliminates mortgage insurance and provides immediate equity, lowering your mortgage amount and monthly payments.
For example, a $600,000 home would require a minimum down payment of $30,000, leading to higher mortgage and insurance fees. A 20% down payment of $120,000 avoids insurance and reduces ongoing costs, making homeownership more affordable in the long run, despite the initial challenge of saving for a larger down payment.
Buying a home is one of the biggest investments you’ll make. Whether you’re thinking about co-owning with someone, trying “rentvesting,” or moving to a more affordable area, a trusted real estate agent can help you make the right decision. Contact an agent today to get the process started.
