You’ll need to be making more than $220,000 to buy a home in Toronto and Vancouver with a 20 per cent down payment, according to new data from Ratehub.ca. Even though home prices have been going down in hot markets like Toronto and Vancouver, the income required to purchase a home in these markets still remains elevated due to higher stress test rates caused by rising mortgage rates. Homebuyers in Toronto need to earn $15,750 or seven per cent more compared with March, with those in Vancouver needing to make $31,730 or 16 per cent more. Across all Canadian cities, the annual income needed to buy a home has jumped by $18,000 on average in just the last four months. The stress test sets the qualifying rate for uninsured mortgages at either two percentage points above the contract rate or 5.25 per cent, whichever is greater.

Source: CBC News July 21, 2022 16:53 UTC