You need to earn more than $129K to buy a home in Ottawa: Report

A new home is shown for sale in a housing development in Ottawa on Tuesday, July 14, 2020. (Sean Kilpatrick / THE CANADIAN PRESS)

The income required to buy a new home in Ottawa increased last month, according to a new report by ratehub.com.

The report notes that residents in the capital should be making $129,320 per year -- as of February, 2024 -- to qualify for a mortgage to purchase the average priced home. The income needed to prequalify has risen by $480 from January to February.

The average price of a home in Ottawa was $621,600 in January and $628,500 in February – an increase of $6,900, reads the report.

In Toronto, home prices have gone up $28,100 in the first two months of the year– the average home prices are $1,065,800 and $1,093,900 for January and February respectively, says the report.

Residents in Toronto should be making $214,100 annually per year to qualify for a mortgage – an increase of $3,800 between the first two months of the year.

Meanwhile, the average home price has risen by $22,000 from January to February in Vancouver – In January, the average home price was $1,161,300. As of February, the average home price is $1,183,300, says the report.

Residents in Vancouver should be making $230,350 annually to qualify for a mortgage, reads the report.

In Calgary, the average home price has gone up $10,400 between the first two months of the year -- in January it was $557,500 and in February it rose to $567,900, says the report.

To qualify for a mortgage in Calgary, you should be making $118,300 annually as of February, adds the report.

Mortgage qualifications are based on interest rates and stress test, the average home prices, down payment and annual income, says the report.

Ratehub.ca looks at the income required to buy a home in February based on a mortgage rate of 5.63 per cent and a stress test rate of 7.63 per cent.