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
BREAKING King Charles' cancer treatment progressing well, says Buckingham Palace
King Charles III’s doctors are 'sufficiently pleased' with his cancer treatment and he is expected to return to public-facing duties, Buckingham Palace announced on Friday.
BREAKING Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
'Unacceptable': Trudeau reacts after AFN chief says headdress taken from plane cabin
After the Assembly of First Nations' national chief said her headdress was taken from an airplane cabin this week, Prime Minister Justin Trudeau called the incident 'unacceptable' and a 'mistake' on the part of Air Canada.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Regina police officer injured after being accidentally shot by fellow officer's gun
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
From faulty kids' cribs to flammable kids' bathrobes, here are the recalls of the week
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.