While not surprising to most Victorians, a recently released report show those living in the capital region need to earn nearly $188K per year to buy a home in the city.
The report by mortgage rate comparison company ratehub.ca found that a prospective homebuyer would need to earn a six figure salary to afford it.
Canadians who want to buy a home in Victoria will need to earn $187,980 a year, that’s gone up a whopping $35,760 (23%) since March.
That number is based on an average home price of $985,500 and a mortgage amount of $788,400.
The Bank of Canada started hiking the key overnight rate in March after two years of historic low rates. Ratehub says that fixed-rate mortgages increased by 66% on average between March and June of this year.
As mortgage rates have increased, so has the stress test rate. Home prices started trending downwards in some major cities. However, the annual income you need to buy a home has increased significantly across all cities – by $18,000 on average, in just the last four months.
Those wanting to purchase a home in Vancouver will need to have the highest income to afford to a property. According to ratehub’s data, a yearly salary of $231,950 is needed to afford a home. Toronto is second in that category with hombuyers needing to earn a $226,500.
A recent RE/MAX Housing Affordability in Canada report found that the majority (64%) of Canadians surveyed are willing to relocate to achieve housing affordability.
Of those, 50% of Canadians said they would make their change of scenery less than 100 km from where they currently live.
According to ratehub.ca, Winnipeg is the cheapest place to purchase a home with a earning requirement of $78,270. Edmonton is next up at $86,770.
Ready to make a move or would you prefer the beauty of BC?