The income required to buy a home in Ottawa increased more than $3,000 in April, as mortgage rates and rising home prices impacted home affordability. A new report from Ratehub.ca shows the average income required to buy a home in Ottawa was $135,000 in April, up from $131,850 in March. Ratehub.ca looks at the income required to buy a home with a 10 per cent down payment, a 25-year amortization, $4,000 in annual property taxes and a monthly heating bill of $150. The mortgage rate was 4.47 per cent and the stress test rate was 6.47 per cent in April, up from a mortgage rate of 4.39 per cent in March. According to the report, the average home price in Ottawa was $629,800 last month, up from $617,700 in March. The income required to buy a home increased in 12 of 13 Canadian cities in April, with Ottawa having the largest increase in income required to buy a home. Ratehub.ca mortgage expert Penelope Graham said April was the first month they’ve seen the impact of recent increases to fixed mortgage rates materialize in the housing market. “Both mortgage rate and home price changes impacted home affordability this month,” Graham said. “Home prices were up in the majority of the cities and the average of the Big Five Banks’ five-year fixed rates increased by 0.08, enough to have an impact on the income required to buy a home.” Graham says Ottawa homeowners would be paying $88 more a month on their monthly mortgage payment in April. “This is due to the home price increase of $12,100 as well as the mortgage rate increase,” Graham said. The income required to buy an averaged price home increased $2,270 in Victoria to $184,900, while the income required in Toronto jumped $1,740 to $194,940.
