Here's how much you need to earn to afford a home in Ottawa
The income required to purchase a home in Ottawa has dropped $7,500 over the summer, but you will still need to have a six-figure income to buy your dream home.
A new report from RateHub.ca shows that homebuyers will need to earn at least $129,980 to meet the requirements to obtain a mortgage for the average priced home in the capital, with a 20 per cent down payment.
That's down from $137,050 required to purchase an average-priced home in Ottawa in June.
The report looks at the income required to purchase a home in Ottawa, with the average home price of $650,200 in August. The stress test rate was 7.3 per cent and the mortgage rate is 5.3 per cent.
Ottawa had the fifth-highest income requirement to purchase a home in August, of the 10 Canadian cities looked at by RateHub.ca. Vancouver had the highest income requirement of $223,850, followed by Toronto ($213,950), Victoria ($183,700) and Hamilton ($167.500).
RateHub.ca says all 10 Canadian cities studied saw a drop in the income required to purchase an average price home in August.
"Homes in every city we looked at are slightly easier to afford than they were two months ago. This is because rates have remained unchanged, while home prices have softened," says James Laird, Co-CEO of Ratehub.ca and President of Canwise mortgage lender.
According to RateHub.ca, the income required to buy an average-priced home in Ottawa in March was $121,700, before increasing to $137,050 in June. The mortgage rate and the stress test rate were lower in March (3.14 per cent mortgage rate, 5.25 per cent stress test rate) than in June and August.
Laird says if the Bank of Canada increases interest rates again and there is a stabilization of home prices, affordability will start to decrease again.
"If rate hikes were to come to an end soon and home prices continue to drop, affordability would keep improving."
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.