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

House for sale in Ottawa on Feb. 24, 2011. (THE CANADIAN PRESS IMAGES / Sean Kilpatrick)

The average income needed to buy a new home in Ottawa increased $3,600 in July, as rising mortgage rates and the stress test threshold offset a decline in housing prices.

A new report by Ratehub.ca shows Ottawa homebuyers needed to earn an average salary of $138,260 to buy a new home in July, up from $134,650 in June.

The average price of a new home was $650,200 in Ottawa last month, down from $652,700 in June.

Ratehub.ca looks at the income required to buy an average-priced home in Ottawa and across Canada with a mortgage rate of 6.12 per cent and the stress test rate of 8.12 per cent.

The income required to buy a home in Vancouver increased $8,970 in July to $244,620, while the income required in Toronto jumped $5,450 to $235,250.

"Most Canadians can now expect an average stress test of 8 per cent or higher, which is the highest stress test home buyers have ever seen," James Laird, co-CEO of Ratehub.ca, said in a statement.

"Mortgage rates increased significantly from June to July, which has caused every city we looked at to become less affordable, even though home values were down in some cities. More income is required to qualify for the average home in all 10 cities we looked at, including the four cities where home prices decreased."

The average income required to purchase a new home across the country ranges from $80,760 in Winnipeg to $244,620 in Vancouver.