The income required to purchase a home in Ottawa increased $1,730 in February, as home prices increased in the capital. A new report from Ratehub.ca shows the income required to buy the average priced home in Ottawa was $131,610 in February, up from $129,880 in January. 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 4.41 per cent and the stress test rate was 6.40 per cent. According to Ratehub, the average price of a home in Ottawa was $615,400 in February, compared to $606,700 in January. Eleven cities saw an increase in the income required to purchase a home in February. “This is the first time since June of last year where we’ve seen affordability worsen in most cities,” Penelope Graham, mortgage expert at Ratehub.ca, said in a statement. “While mortgage rates remained flat month-over-month, home prices did not. The increases in the average home prices were enough to impact the income required to buy a home.” The income required to buy the average priced home in Montreal increased $2,800 to $127,600, while the average income required to buy a home in Halifax jumped $2,640 to $120,850. Vancouver and St. John’s were the only cities to see a decline in the income required to buy a home, as home prices dropped in the two cities. The income required to buy a home in Vancouver dropped $100 to $223,600, while the income required in St. John’s dropped $1,130 to $88,700.
