According to the online mortgage services firm RateHub, access to property has more or less held steady in the last two months in Montreal, while the income required to buy a home has decreased almost everywhere else in the major cities of the Canada.
See also – The reduction in the key rate, a double-edged sword
In its calculation of the minimum annual income to buy a home, RateHub discovers that the effect of the last three rate cuts by the Canadian central bank is starting to be felt, although in Montreal, access to property has increased. slightly deteriorated with an increase of $350 in required income, to $108,900 per household.
However, in Vancouver for example, the average house price fell by $16,200 to $1.18 million, which resulted in a drop of $5,000 in the annual income required to make an acquisition. For comparison, the average purchase price of a home in Montreal was $543,400 last September, up $7,700 from the previous month.
Overall, considering demand, rate cuts and subsequent reductions in mortgage rates, Philippe Simard, Quebec mortgage director for RateHub, notes that a “window of affordability” has opened for active buyers in the real estate market.
In recent weeks, the Bank of Canada has faced a lot of pressure to lower its key rate more substantially, arriving, as we saw in the United States in September, with a cut of 50 points. base.
Nothing is guaranteed, but a good sign that this kind of reduction could come is the slowing of inflation below the central bank’s 2% target, to 1.6%, according to the latest Statistics Canada report.
The annual income required to buy property in Canada in September 2024
Calgary
- Average housing price: $582,100
- Required income: $115,600
Edmonton
- Average housing price: $399,400
- Required income: $83,990
Fredericton
- Average housing price: $312,000
- Required income: $68,860
Halifax
- Average housing price: $538,100
- Required income: $108,000
Hamilton
- Average housing price: $831,500
- Required income: $158,740
Montréal
- Average housing price: $543,400
- Required income: $108,900
Ottawa
- Average housing price: $642,800
- Required income: $126,100
Regina
- Average housing price: $320,700
- Required income: $70,360
St. John’s
- Average housing price: $364,100
- Required income: $77,880
Toronto
- Average housing price: $1.07 million
- Required income: $199,800
Vancouver
- Average housing price: $1.18 million
- Required income: $219,000
Victoria
- Average housing price: $864,400
- Required income: $164,450
Winnipeg
- Average housing price: $362,500
- Required income: $77,600
Source : RateHub
-With information from Guillaume Théroux for Noovo Info
The data in the table is based on a mortgage with a 20% down payment, a 25-year amortization, annual property taxes of $4,000 and monthly heating of $150. Mortgage rates are the average of 5-year fixed rates from the big five banks in September 2024 and August 2024. Average home prices are derived from CREA’s Home Price Index (MLS®). The September calculation was made based on a stress test rate of 7.04% and a mortgage rate of 5.04%.
