Top 6 most affordable cities to buy a house

Study on affordable cities to buy a house says Regina, Saskatoon, Winnipeg, Halifax-Dartmouth, Calgay and Edmonton are the top six

Just how feasible would it be for a household on a median income to purchase real estate in Canada?

According to a new study by Zoocasa of 15 major urban centres across the country, such a household would be able to afford the local benchmark-priced home in their region in a total of eight markets, and would be able to save up the required down payment in less than a decade, says the online real estate agency.

“However, in the remaining seven, a median-income earner wouldn’t qualify for a mortgage large enough to fund their home purchase, and would need to supplement it with a hefty down payment, which, in some urban centres, would require a savings timeline that spans decades, assuming they set aside 20 per cent of their total income each year.”

To determine the extent of affordability for median-income households, Zoocasa calculated the maximum mortgage they’d qualify for in each region, assuming a three per cent interest rate, 25-year amortization, and that the equivalent of one per cent of the total home purchase price would be put toward annual property taxes. An additional $100 per month for heating costs was also factored into the calculation.

Here are the most affordable cities for median income households, in order:

Regina

Average home price: $267,900
Median household income (before tax): $84,447
Maximum mortgage: $264,685
Remaining required down payment: $13,395
Saving timeline: one year

Saskatoon

Average home price: $290,800
Median household income (before tax): $82,999
Maximum mortgage: $287,310
Remaining required down payment: $14,450
Saving timeline: one year

Winnipeg

Average home price: $292,198
Median household income (before tax): $70,759
Maximum mortgage: $288,695
Remaining required down payment: $15,771
Saving timeline: one year

Halifax-Dartmouth

Average home price: $315,423
Median household income (before tax) $69,522
Maximum mortgage: $311,365
Remaining required down payment: $15,771
Saving timeline: one year

Edmonton

Average home price: $321,300
Median household income (before tax): $94,447
Maximum mortgage: $317,444
Remaining required down payment: $16,065
Saving timeline: one year

Calgary

Average home price: $420,500
Median household income (before tax): $99,583
Maximum mortgage: $415,454
Remaining required down payment: $21,025
Saving timeline: one year

© Troy Media


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