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
Poilievre will do 'anything to win,' must condemn Alex Jones endorsement: Trudeau
Prime Minister Justin Trudeau is ramping up his attacks on Conservative Leader Pierre Poilievre as he promotes his government's federal budget.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.
New evidence challenges the Pentagon's account of a horrific attack as the U.S. withdrew from Afghanistan: CNN exclusive
New video evidence uncovered by CNN significantly undermines two Pentagon investigations into an ISIS-K suicide attack outside Kabul airport, during the American withdrawal from Afghanistan in 2021.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
All Alberta wildfires to date in 2024 believed to be human-caused: province
There are 63 wildfires burning in Alberta's forest protection area as of Wednesday morning and seven mutual aid fires, including one in the Municipal District of Peace.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Suspects waving weapons, smashing glass in Toronto jewelry store robbery caught on video
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
Pilot proposes to flight attendant girlfriend in front of passengers
A Polish pilot proposed to his flight attendant girlfriend during a flight from Warsaw to Krakow, and she said yes.