New housing affordability data finds buyers need to earn an annual income of over $187,000 to buy a home of average value in Victoria.
RateHub’s list of all major cities in Canada finds the average home price hit $985,500 in B.C.’s capital last month, meaning buyers need to make $187,980 or more a year to purchase a home.
Compared to other cities, the mortgage information service says Victoria saw the biggest hike since March with $35,760 in additional income required — a 23 per cent increase.
Vancouver trailed close behind, requiring an extra $31,730, while Hamilton and Winnipeg saw the lowest increases at $8,660 and $9,540, respectively.
With its data based on mortgages with a 20 per cent down payment, RateHub finds home prices are beginning to drop across the country.
Still, it notes that rising mortgage rates are making it more difficult for Canadians to afford a home.
READ ALSO: Interest rates hike already felt in Victoria
“While home prices were down for the month of June in cities like Toronto, Vancouver, Winnipeg, Ottawa and Hamilton, the income required to purchase a home in these markets still remains higher due to stress test rates,” RateHub said.
In just the last four months, the annual income required to purchase a home jumped by $18,000 on average across all cities.
(RateHub)
Ethan Morneau
