Report shows income of just over $127K needed to purchase home in Ottawa
Posted Nov 16, 2022 07:00:00 PM.
A new report by Ratehub.ca is showing that homebuyers will need an income of at least $127,900 in order to meet the conditions of receiving a mortgage for an average priced home in Ottawa with a down payment of 20 per cent.
The report looks at the income needed to buy the average priced home in Ottawa in October of 2022 as well as the mortgage rate and the stress test rate. The average price of a home in the capital was $630,800 in October, with the stress test rate of 7.44 per cent and a mortgage rate of 5.44 per cent.
The required income to buy a new home in Ottawa declined by $2,080. In August, with a stress rate of 7.4 per cent and a mortgage rate of 5.3 per cent, the income needed to buy a home in Ottawa with a down payment of 20 per cent was $129,980 while in June, with a stress test rate of 7.21 per cent and a mortgage rate of 5.21 per cent, the income needed to buy a home in Ottawa with a down payment of 20 per cent was $137,050.
“With the Bank of Canada signalling that the worst of the rate hikes may be behind us, there is room to be cautiously optimistic about the state of home affordability in Canada,” the report on Ratehub.ca stated. “Falling home prices combined with relatively stable (though high) mortgage rates mean that affordability is likely to continue to improve over the remainder of 2022 and into 2023.”
Vancouver is the most expensive city in Canada to buy a home, with an annual income of $220,700 needed to buy a home followed by Toronto where a required income of $211,650 is needed.
The full report can be viewed here.
