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
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.'s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease's progression.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
Collapsed Baltimore bridge span comes down with a boom after crews set off chain of explosives
Crews conducted a controlled demolition Monday to break down the largest remaining span of the collapsed Francis Scott Key Bridge in Baltimore.
What Michael Cohen said on the stand in Trump hush money case
The star prosecution witness in Donald Trump's hush money trial took the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
A child killer legally changed his name in B.C. The province is trying to stop that from happening again
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Mortgage companies could intensify the next recession, U.S. officials warn
U.S. officials worry the next recession could be intensified by a cascading series of failures in the mortgage industry caused by crashing home prices, frozen financial markets and soaring delinquencies.
Security video caught admitted serial killer disposing of bodies in Winnipeg garbage bins
Security video caught admitted serial killer Jeremy Skibicki on multiple late-night outings, disposing of body parts in nearby garbage bins and dumpsters in the middle of the night.
Behind the barricades: How protesters spend their first days in a new encampment
Students in Montreal describe life in a newly erected encampment in Montreal as a whirlwind of preparations, from facing rain and a potential police crackdown to setting up a space for the exchange of ideas.