How much do you need to earn in order to afford a home in Canada? It all depends on where you live.
Data from real estate site Zoocasa recently revealed how much income prospective buyers need to afford the benchmark home in their city. Zoocasa calculated the minimum income required to qualify for a mortgage in 13 census metropolitan areas (CMAs) across Canada, assuming a 20% down payment, 3.75% mortgage rate, and 30-year amortization. Benchmark home prices were sourced from the Canadian Real Estate Association and local real estate boards.
Unsurprisingly, Zoocasa found that you need to be high up the income ladder to afford a home in Vancouver and Toronto. Data showed that only those within the top 10% income group – earning an average of $124,554 a year – can afford to buy houses for sale in Toronto at a benchmark price of $873,100. In Vancouver, buyers must be at least within the top 2.5%, earning an average of $205,475 a year, to buy a home at the city’s benchmark of $1,441,000.
At the other end of the spectrum, prices are more affordable in the Prairies. Homebuyers in Regina need to be within the top 75%, earning an average of $39,342 a year, to purchase the benchmark property at $275,900. Saskatoon and Winnipeg are both nearly as affordable, as buyers with incomes in the top 50% can afford houses priced at $301,900 and $326,433, respectively.