How much you need to earn to buy a house in every major Canadian city?
Wednesday, Jan 06, 2016
Many say property is the best investment you can make. Bursting housing bubbles and mortgage scandals aside, they’re usually right.
The price of making that investment varies widely in Canada, depending on where you live. We looked at how much you need to earn to buy an average-priced house in every major Canadian city.
We got the average purchase price per city from the Canadian Real Estate Association (they fluctuate. These prices were effective at the end of December. To see the absolute latest click here and input your city), and Williams provided the property tax rates. At his suggestion we used a 2.99% interest rate, which is the average qualifying rate for a 5-year fixed term. We used a down payment of 10% of the purchase price and calculated $100 a month for utilities.
According to Williams, “Other factors that will be included with mortgage qualification are the total monthly payment obligations from credit card, LOC’s, personal & car loans, car lease and other types of credit that require a monthly payment.”
Here is what you need to earn to buy a house in every major Canadian market. (Numbers are rounded to the nearest dollar.)
Vancouver
Average price: $819,336
Monthly mortgage payment: $3,570
Property tax: $251
Income required: $147,023
Calgary
Average price: $465,047
Mortgage mortgage payment: $2,026
Property taxes: $236
Income required: $88,578
Edmonton
Average price: $365,520
Mortgage payment: $1,592
Property tax: $244
Salary required: $72,617
Regina
Average price: $331,161
Monthly mortgage payment: $1,443
Property tax: $378
Income required: $72,028
Saskatoon
Average price: $349,322
Monthly mortgage payment: $1,522
Property tax: $366
Income required: $74,546
Winnipeg
Average price: $270,605
Monthly mortgage payment: $1,179
Property tax: $274
Income required: $58,235
Ottawa
Average price: $357,887
Monthly mortgage payment: $1,559
Property tax: $336
Income required: $74,820.28
Toronto
Average price: $587,505
Monthly mortgage payment: $2,560
Property tax: $354
Income required: $113,009
Montreal
Average price: $344,273
Monthly mortgage payment: $1,500
Property tax: $237
Income required: $68,884
Halifax
Average price: $264,447
Monthly mortgage payment: $1,152
Property tax: $266
Income required: $56,929
Source: Toronto Star
