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Here's how much you need to earn to afford a home in Ottawa

 

House for sale in Ottawa (THE CANADIAN PRESS IMAGES / Sean Kilpatrick)
House for sale in Ottawa (THE CANADIAN PRESS IMAGES / Sean Kilpatrick) | Image Source: ottawa.ctvnews.ca

The income needed to buy a home in Ottawa dropped by $7,500 over the summer, but you'll still need to make six figures to buy your dream home.

A new report from RateHub.ca shows that homebuyers will need to earn at least $129,980 to qualify for a mortgage on a median-priced home in the capital city with a 20 per cent down payment.

That's less than the $137,050 needed to buy a median-priced home in Ottawa in June.

The report looks at the income needed to buy a home in Ottawa, with a median home price in August of $650,200. The stress test rate was 7.3 percent and the mortgage rate is 5.3 percent.

Ottawa had the fifth-highest income requirement to buy a home in August of the 10 Canadian cities tracked 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 needed to buy a median-priced home in August.

"Homes in every city we looked at are slightly easier to buy than they were two months ago. That's because rates have remained unchanged while home prices have softened," says James Laird, Co-CEO of Ratehub.ca and President Canwise. mortgage lender.

According to RateHub.ca, the income needed to buy a median-priced home in Ottawa was $121,700 in March before rising to $137,050 in June. The mortgage rate and stress test rate were lower in March (3.14 percent mortgage rate, 5.25 percent stress test) than in June and August.

Laird says if the Bank of Canada raises interest rates again and home prices stabilize, affordability will begin to decline again.

"If rate hikes were to end soon and home prices continued to fall, affordability would continue to improve."

News Source: ottawa.ctvnews.ca