BC is and has been consistently one of the most expensive places to attempt to buy a home in Canada because its opportunities, landscapes and culture are sought after across the country.
According to a study conducted by Hellosafe, a Canadian financial advisory and statistical analysis firm, the base annual income for those looking to buy in BC’s coastal cities is higher than some may have expected.
In all of BC, the average annual income required to buy a 1,500 square foot home is $378,159; however, in Victoria, the income required is slightly lower at $349,277.
This is approximately $674 per square foot.
The reason why the BC average is so much higher is largely due to the Greater Vancouver Area being so drastically expensive for prospective homeowners, which comes as no surprise.
The average annual income required to buy a 1,500 square foot home in the top three most expensive areas, Vancouver, West Vancouver and North Vancouver, is $608,746, $538,539 and $505,047, respectively.
Conversely, the cheapest three places to live in BC according to Hellosafe’s report are Prince George, Kamloops and Vernon. The annual income required in these three municipalities to purchase a 1,500 square foot home is $117,420, $156,536 and $177,584 respectively.
Campbell River was the lowest on the list for Vancouver Island municipalities coming in at fifth cheapest. There, an annual income of $186,682 is required to buy a 1,500 square foot home, according to Hellosafe.
Nanaimo also ranked among the more affordable BC municipalities to buy a home in. An annual income of $195,102 is needed in Nanaimo to get a mortgage on a home.
These calculations are based on data collected during the month of June 2023. The math is based on the assumption that a mortgage will be taken with a down payment of between 5% and 20% at a fixed rate for five years at 4.89%.
Hellosafe says the assumption is that the mortgage would be paid off over 25 years with a debt-to-income ratio of 30%.