How many coffees would you need to stop buying to afford a home in Ontario

Can skipping your daily coffee help you buy a home? According to a recent study calculating how long it would take to save a 20 per cent down payment, the results say no.

You’ve probably heard this sentiment before: If you just stopped buying lattes every day, you could afford a house.

However, according to a study done by a real estate company in Toronto, many Ontarians don’t stand a chance with today’s housing market.

As real estate prices continue to soar across Ontario, some Canadians may be looking for unique ways to save up for a new home, like cutting out a daily latte. But according to data from ZooCasa, saving $5.19 a day (national average cost of a latte) may not be enough to move the needle.

Using average home prices across the province, the study calculated how long it would take to save a 20 per cent down payment using just your coffee savings.

In the London-St. Thomas area, where the average home costs $608,500, a 20 per cent down payment sits at $121,700. That means it would take 90 years of coffee shop-free mornings to save enough.

Meanwhile, in Kitchener-Waterloo, the wait jumps to 106 years, where homes cost an average of $13,800. Over in Hamilton-Burlington, you’d be skipping your morning treat for more than a lifetime, or about 121 years, to cover a down payment of $164,160.

And in Toronto? The average home costs an estimated $1,060,300, which would require a $212,060 down payment. At $1,350 extra saved a year, you would need to refrain from your daily coffee-shop run for more than 157 years.

Although cutting back on small expenses can help improve saving habits, the study found the latte advice may fall flat.