Buying a Home in Canada Has Become Easier, & Here’s How Much You Need to Earn in Major Cities
A look at the country’s cheapest and most expensive real estate markets. There is good news for those looking to buy a home in Canada, as prices in all major markets have decreased in recent months.
Housing costs decreased from August to October in ten major cities, according to a recent report by RateHub.ca. With less income required to qualify for a mortgage than it was over the summer, Canadian real estate is now significantly more affordable.
This presents an excellent opportunity for anyone looking for a nice place to live!
So, here’s a look at some of the cheapest and most expensive major cities in Canada to buy real estate right now, as well as a breakdown of how much you’d need to earn to afford it.
What is the cheapest city to buy a house in Canada?
According to RateHub.ca‘s report, Winnipeg Manitoba is the cheapest major city of the ten surveyed for anyone looking to buy a house, with an average home cost of $337,400. And this is after a $9,100 decrease since August 2022.
That means an average income of $75,320 is required to secure that mortgage.
Following that, the second cheapest place to buy a home is Edmonton, where the average home price is $372,400, a $20,000 decrease from earlier this year.
It only requires an income of $81,600 to be affordable.
Halifax is the third cheapest city on the list. The average home price in the Nova Scotian city fell by $27,300, to $484,800. This is the second-largest price decrease among the ten cities surveyed.
To secure and maintain that mortgage, you’d need a six-figure income of $101,750.
What is the most expensive city to buy a house in Canada?
The report notes that with an average home price of $1,148,900, Vancouver is the most expensive city in Canada to buy a home.
This means you’ll need a salary of $220,700 to afford the apartment. And this is after a $31,600 drop in home prices!
Following closely behind is Toronto, where the average cost of a house is $1,098,200 after prices dropped by $26,400. So, if you want to buy a home in the 6ix, you should have a salary of around $211,650.
Following these two major population centers, the third most expensive major market in Canada is Victoria, B.C., where the average home costs $915,300.
And this is after prices have dropped by $38,500, the most of any of the cities studied. To afford the apartment, you would still need to earn $178,890 per year.
Hamilton, with an average house price of $836,800 after a $25,500 drop, is located in the middle of these extremes.
Both Montreal and Ottawa experienced decreases of $18,900 and $19,400, respectively. This reduces the price of a home in Montreal to $504,800 and the price of a home in Ottawa to $630,800. Finally, Calgary saw one of the smallest decreases in house prices, with rates falling by only about $8,300, bringing the average down to $513,000.
Even with the price decrease, these figures may make you cringe.
Fortunately, there are numerous government programs available to assist you in saving money for a down payment on a home, including a tax-free home savings account.
