Here's how much you need to earn to buy a home in Ottawa this summer

Anyone looking to buy a home in Ottawa must have a six-figure income to purchase a property this summer.

A new report from RateHub.ca shows homebuyers will need to earn at least $137,050 to meet the requirements to obtain a mortgage for the average priced home in the capital, with a 20 per cent down payment.

The report looked at the income required to purchase a home in Ottawa, with the average home price of $695,600 in June, and a mortgage of $556,480. The stress test rate was 7.21 per cent and the mortgage rate of 5.21 per cent.

Of the 10 Canadian cities looked at by RateHub.ca, Ottawa had the fifth-highest income requirement to purchase a home in June. Vancouver had the highest income requirement at $231,950, followed by Toronto ($226,500), Victoria ($187,980), and Hamilton ($179,060).

RateHub.ca says the income required to buy an average-priced home in Ottawa increased $15,350 from March to June.

The report from the mortgage rate comparison site says while the average price of a home in Ottawa was down in June from March, the income required to purchase a home remains higher due to stress test rates.

In March, homebuyers needed an income of $121,700 to purchase the average home in Ottawa of $728,000, according to RateHub.ca.  The report notes the stress test rate and the mortgage rate were lower in March than in June.

"In every city, homebuyers require a lot more income to purchase the average home due to higher stress tests caused by increasing mortgage rates," RateHub.ca Co-CEO James Laird said in a statement.

Laird says home prices will need to drop significantly further to offset the effects of the higher stress test.

"Unless that happens, home affordability will continue to be negatively impacted by the current rising rate environment."