Posthaste: How many skipped vacations does it take for a down payment?
Following a long weekend when much of Canada was snowed in, many might be looking for a last-minute trip to a sunny destination.
Such a trip might be appealing, but it can severely set you back when it comes to financial goals, especially for those looking to save for a down payment on a home.
But just how much of that travel would Canadians need to be skipping out on to afford that first home?
It could take more than a decade of skipping vacations to afford a down payment in many parts of the country, Zoocasa Inc. calculated using 2024 data that shows Canadians spend $4,241 every year on an annual vacation.
For example, in order to afford the average down payment of $103,440 in Greater Vancouver, the average Canadian would need to skip 24 years' worth of vacations, while it would take 19 years in both Toronto and Fraser Valley, B.C.
Overall, it would take more than 10 years in nine regions across the country, including Ottawa (10 years), Hamilton (14 years) and Victoria (17 years).
'While skipping nearly a decade of travel may seem overwhelming, there are ways to accelerate homeownership without completely sacrificing lifestyle,' the report said. 'If five years of vacation savings can cover half a down payment, pairing this with strategies like house hacking, investing or purchasing a more affordable starter home could fast-track your journey while allowing occasional getaways.'
The report also said there are some other strategies that could cut down on the timeline, such as looking at the condo market or waiting for a period of high inventory.
Canadians could also consider a more affordable market. There are six areas where it would take a mere four years of avoiding sunny destinations to afford a down payment, including Regina, Thunder Bay, Ont., Saint John, N.B., and the entirety of Newfoundland and Labrador.
For those who don't like the idea of skipping vacations, Zoocasa suggests staycations or working abroad can help cut down on the homeownership timeline without killing the travel bug.
'Overall, homeownership and travel don't have to be an either-or decision,' the report said. 'With the right financial plan, you can have both home keys and passport stamps in your future.'
The tariff threats from U.S. President Donald Trump keep coming. Today at noon ET, Financial Post reporters Gabriel Friedman and Serah Louis will be online to answer your questions about the latest developments and how they affect Canada during a live Q&A session. to receive a reminder ahead of the event with a link to the chat.
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Canada's inflation rate for January ticked back up to 1.9 per cent, as a 5.3 per cent increase in energy costs drove the slight month-by-month increase.
Gas prices in the month climbed 8.6 per cent year-over-year, while natural gas was up 4.8 per cent.
This marks a slight increase from the 1.8 per cent inflation rate seen in December, but still within the Bank of Canada's target rate of two per cent.
Read more here.
2 p.m.: United States Federal Reserve releases minutes from its latest rate decision
Today's Data: U.S. housing starts and building permits for January
Earnings: HSBC Holdings plc, Progressive Corp., Rio Tinto plc, Glencore plc, Manulife Financial Corp., Garmin Ltd., Gildan Activewear Inc., Lundin Mining Corp., Etsy Inc., The Cheesecake Factory Inc.
Amidst the countdown to U.S. tariffs, steel producers decry 'dumped steel' in Canada
Canada's inflation rate ticks back up to 1.9% on spike in gas prices
Bank of Canada could skip March rate cut: Economists on the latest inflation numbers
West-East pipeline is key to securing Canada's energy future
What does Navy SEAL Team 6 and investing have in common? Investing pro Martin Pelletier talks about how trust can be a powerful force in maximizing a winning outcome. Find out more
Calling Canadian families with younger kids or teens: Whether it's budgeting, spending, investing, paying off debt, or just paying the bills, does your family have any financial resolutions for the coming year? Let us know at wealth@postmedia.com.
Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily.
Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more.
Today's Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.
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