Buying a home is a major milestone in life most people look forward to, but if you live in Toronto in 2022, chances are you'll have to settle for renting.
Ratehub.ca calculated how much a person needs to make per year to afford a home using real estate data from March 2022 to June 2022 – and unless you're pulling in big bucks at work, you probably can't afford one.
As of June 2022, house hunters will need to make at least $226,500 per year to afford a home in Toronto, with the average price of a home sitting at $1,204,900.
According to Ratehub.ca, in just three months, the minimum annual income required to afford a home in Toronto shot up seven percent from $210,750 to $226,500 per year, even though the average price of a home dropped by over $130K.
Although Toronto's real estate market is cooling, Ratehub.ca explains that "rising mortgage rates continue to push the stress test upward, thereby making it more difficult for Canadians to afford a home," despite lower prices.
If you waited to pull the trigger on a home a few months ago, you'd need to make over $15K more a year to afford it now.
Here's how much you need to make yearly to afford a home in Canada's major cities, according to Ratehub.ca.
- Vancouver, $231,950
- Toronto, $226,500
- Victoria, $187,980
- Hamilton, $179,060
- Ottawa, $137,050
- Montreal ,$110,900
- Halifax, $110,580
- Calgary, $108,050
- Edmonton, $86,770
- Winnipeg, $78,270
This article's cover image was used for illustrative purposes only.
