A frustrated Reddit user recently sparked hundreds of responses with a simple question: "I need to understand this: who the hell is buying 'normal' homes for $750K to $850K?"

The post in r/RealEstateCanada laid out the math that's been bothering a lot of Canadians. In markets like Hamilton, basic three-bedroom, two-bathroom houses are selling for $750,000 to $850,000. Nothing fancy. Just normal family homes. And when you look at the median household income sitting around $100,000, the numbers don't add up.

To buy a $750,000 home, you'd need roughly $150,000 down plus monthly mortgage payments around $3,700 to $4,000. That's 150% of gross household income just for the down payment.

"Are you telling me normal families have 150% of their GROSS household income on hand to pay for a downpayment?" the poster asked. "I don't get it. These aren't specialty homes. They're normal homes and they still appear to be selling."

The post struck a nerve, generating hundreds of comments from actual buyers, real estate professionals, and equally confused renters. The answers reveal a market that's fundamentally changed from what most people imagine.

‍

The Property Ladder Is Everything

The biggest factor, according to dozens of responses? Most buyers aren't first-timers anymore.

People who bought a starter condo or townhouse 10 years ago for $350,000 to $500,000 now have significant equity. If that property is worth $650,000 to $750,000 today, they can walk away with $300,000 to $400,000 after selling. Suddenly, buying an $850,000 home becomes manageable because the mortgage is only $450,000 to $550,000.

This is how the majority of people are doing it. They're selling homes they bought when prices were lower and rolling that equity into something bigger. As one commenter put it: "Nobody with a brain gets a $1 million mortgage. It's people selling homes they paid down and putting large sums down."

Another explained their own journey: "Our first house was $500K. Second $750K. Third $1.1 million. Paid off mortgage at 7 to 10 year rate. Rolled all profits back in. 15 years elapsed."

The problem? This leaves first-time buyers almost completely locked out.

‍

Living at Home Changed the Game

For younger buyers who did manage to get in, many had one huge advantage: living rent-free with parents.

Multiple people shared similar stories. One couple lived with parents until age 27, saved $140,000, and bought their first home in Hamilton for $800,000. Their combined income was $165,000, but without rent eating into savings for years, they accumulated the down payment.

Another buyer in their mid-30s saved while living at home, eventually scraping together enough to enter the market. It's not glamorous, and it requires family support that not everyone has access to, but it's become a common path.

For those paying rent? The math gets brutal. Saving $150,000 while paying $2,000+ monthly in rent on a $100,000 household income is nearly impossible without taking a decade or more.

‍

Dual High Incomes Are More Common Than You Think

Median income can be misleading. It includes single-income households, part-time workers, and lower-earning individuals. When you're looking at who qualifies for a $750,000 mortgage, you're not looking at median earners.

You're looking at couples where both partners have solid professional incomes. Engineers, healthcare workers, tech professionals, finance roles. Combined household incomes of $150,000 to $250,000 aren't rare in these sectors.

One buyer shared that their household income hit $240,000 (both earning just over $100,000 each), plus they received a $100,000 gift from family and had saved $170,000. They purchased just under $1 million.

Another mentioned a $300,000 combined income buying at $950,000 in 2022.

These aren't the top 1%. But they're comfortably in the top 20% to 30% of earners. And that's who's buying detached homes right now.

‍

Help from Family Is Quietly Everywhere

Parental assistance is more common than people admit.

Sometimes it's a direct gift toward the down payment, $50,000 to $200,000 that completely changes affordability. Sometimes it's living rent-free for years. Sometimes it's cosigning or guaranteeing the mortgage.

One person noted that roughly a quarter of Ontario homes are owned by investors, but among individual buyers, family wealth transfers play a massive role. The CBC recently covered how wealth transfers in Canada are accelerating, with over $1 trillion expected to change hands in the coming years.

For buyers without family help, the gap widens even further.

‍

Some Buyers Are Stretching Too Far

Not everyone buying these homes can comfortably afford them.

Multiple people mentioned seeing friends and coworkers become "house poor," taking on $700,000+ in debt with minimal buffer for unexpected costs. One buyer put down $200,000 on a $750,000 home and now faces $150,000 in needed renovations, locked into their job and city indefinitely.

Foreclosures have reportedly increased 20% to 30% across Canada, suggesting some buyers overextended during lower interest rate periods and are now struggling.

It's a risk. Monthly payments might be manageable today, but life happens. Job loss, illness, major repairs. Without financial cushion, things can unravel quickly.

‍

Immigrant Professionals Bring Different Savings Patterns

Cultural differences in saving and home buying matter too.

Several commenters pointed out that many immigrant families, particularly from South Asian communities, approach home ownership differently. High savings rates, pooling family resources, dual six-figure incomes in tech or healthcare, and prioritizing real estate over other expenses.

One person noted it's common for these buyers to mobilize $100,000+ within days and put down $200,000 to $300,000 without blinking. It's not magic. It's focused financial planning, often with family support networks that operate differently than typical Canadian households.

‍

Minimum Down Payments Lower the Bar (But Raise the Cost)

You don't actually need $150,000 down on a $750,000 home.

The minimum is 5% on the first $500,000 and 10% on the next $250,000, which equals $50,000. Add CMHC insurance, and your mortgage balloons, but the entry barrier drops significantly.

One commenter clarified: "The minimum down on a $750,000 home is only $50,000, not $150,000. People making $100,000+ should be able to save $50,000 in a handful of years."

True. But here's the catch. That higher mortgage with insurance means monthly payments around $3,700 to $4,000. On a $100,000 household income (about $74,000 take-home), you're left with roughly $2,500 monthly for everything else. Doable? Technically. Comfortable? Not really.

‍

Multi-Generational and Multi-Family Buying

Some buyers are getting creative with structure.

Multi-generational purchases are rising. Parents sell their home, use proceeds as a large down payment on a new place, and move into the basement suite. Kids take on the mortgage. Everyone wins.

Others are exploring co-ownership. Two couples buying together, or three individuals splitting a property into separate units. It's complicated legally and interpersonally, but it's happening.

And then there are rental income strategies. Buying a home with a basement apartment or laneway suite potential, renting it out to cover a chunk of the mortgage. It's not passive income, but it makes the math work.

‍

The Reality Check

So who's buying $750,000 to $850,000 homes?

It's not primarily first-time buyers. It's:

• People selling previous homes and using built-up equity
• Dual high-income professional couples
• Buyers who lived rent-free and saved aggressively
• Families receiving financial help from parents
• Immigrants with different savings and pooling practices
• Some buyers stretching their finances to the limit
• Multi-generational or multi-family arrangements

First-time buyers without family help or high dual incomes? They're largely priced out of detached homes in most markets. They're looking at condos, townhouses, or smaller markets. Or waiting. Or giving up entirely.

The property ladder still works, but you need to be on it already. Getting that first step is harder than it's ever been.

‍

What This Means Going Forward

The market isn't operating on fundamentals anymore. It's operating on equity transfers, family wealth, and high-income earners concentrating in specific sectors.

For real estate professionals, understanding these buyer profiles matters. Marketing a $800,000 home to "median income families" misses the mark entirely. You're speaking to equity upgraders, high-income professionals, or family-backed buyers.

For hopeful buyers, the path forward depends heavily on circumstances. Can you save while living at home? Do you have family support? Are you in a high-income field with a partner in the same situation? Can you start with a condo and build equity?

If the answer is no across the board, detached home ownership in major Ontario markets might not be realistic without significant market corrections or income growth.

The homes are selling. Just not to who you might think.