By Anne Levy-Ward
Workopolis says the average price of a home in Canada ranges from $819,336 in Vancouver to $264,447 in Halifax. Wherever you are, find out how to determine how much you can afford to buy a home.
Everyone knows that housing prices are becoming increasingly unaffordable in major Canadian cities like Toronto and Vancouver. But how exactly does that translate into numbers? See what your income needs to buy a mid-priced home where you live.
In a recent article titled How much you need to earn to buy a house in every major Canadian city, Workopolis, the research website made the calculations using the purchase prices shown in the Canadian Real Estate Association’s National Average Price Map for each of the following cities: Vancouver, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Ottawa, Toronto, Montreal and Halifax.
However, keep in mind that the purchase price is not the only index of affordability to the property that a mortgage lender considers when deciding on the loan that will be granted to you. It also considers down payment amount, mortgage interest rate, condominium fees if applicable, cost of utilities and property taxes.
See below what your annual income must be to access home ownership, depending on where you live:
Montreal
Average price: $344,273
Average mortgage payment: $1,500
Property tax: $237
Income required: $68,884
Ottawa
Average price: $357,887
Average mortgage payment: $1,559
Property tax: $336
Income required: $74,820
Halifax
Average price: $264,447
Average mortgage payment: $1,152
Property tax: $266
Income required: $56,929
Toronto
Average price: $587,505
Average mortgage payment: $2,560
Property tax: $354
Income required: $113,009
Calgary
Average price: $465,047
Average mortgage payment: $2,026
Property tax: $236
Income requirement: $88,578
Saskatoon
Average price: $349,322
Average mortgage payment: $1,522
Property tax: $366
Income required: $74,546
Edmonton
Average price: $365,520
Average mortgage payment: $1,592
Property tax: $244
Income required: $72,617
Vancouver
Average price: $819,336
Average mortgage payment: $3,570
Property tax: $251
Income required: $147,023
Regina
Average price: $331,161
Average mortgage payment: $1,443
Property tax: $378
Income required: $72,028
Winnipeg
Average price: $270,605
Average mortgage payment: $1,179
Property tax: $274
Income required: $58,235
Keep in mind that a higher interest rate would increase the amount of income required, and higher down payment, on the other hand, would decrease it. Additional monthly expenses, such as car loan payments and credit card balances, also affect mortgage eligibility.
