Updated almost 9 years ago on . Most recent reply
Toronto & Vancouver Home Owners are MEGA RICH?! (on average)
The average mortgage debt in Toronto is $194, 000 and 259, 000 in vancouver.
Given the average house price is in toront and vancouver is north of a million are we surmising that the average torononian is mega rich? It is very common to see properties selling for 2-3 million in Vancouver (with the average I'm sure nearing a million)...
So most people in toronto/Vancouver have at least a half a million in untapped equity. Why aren't people selling their homes, taking the million and retiring? Or better yet, leveraging that up to buy 20-30 properties in any rational market (not Toronto or Vancouver).
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I'm still shocked at how low the average mortgage to house price ratio is. I assume most people bought these houses 10-20 years ago at rock bottom, have paid the mortgage down further, and are sitting on gold mines?! REFINANCE!!!!
Most Popular Reply
A big part of it is lifestyle, 99/100 people don't invest and have no ambition to. For them it makes perfect sense to just pay that mortgage off and live debt free.
Also if someones living in Toronto and owns a home they love the city, there is really nowhere comparable to move to that is cheap and offers a similar lifestyle.
Friend of mine pay 2950/m for a 2 bedroom condo, because of location and lifestyle. Not logical but thats Toronto