What's the required income to buy a home across Canada?

We all aspire to earn enough money to buy a home sooner rather than later. However, the required income to buy a home is largely dependent on where you reside in Canada.

Workopolis did the math to determine the annual income required to live in major cities across Canada, and in some cases, the variance is drastic. The study calculated the required income based on the average purchase price in each city, 10 per cent down payment, property tax rates, mortgage rates and a 2.99 per cent interest rate as well as an additional $100 per month on utilities.

From lowest to highest earnings required, here is the annual income you need to purchase an average-priced home in cities across Canada.

Halifax

Average price: $264,447
Monthly mortgage payment: $1,152
Property tax: $266
Income required: $56,929

Halifax residents require the least annual income to purchase a home. According to a CMHC report, sales volume declined approximately 20 per cent from its 10-year average of 6,000 transactions. Sales are expected to increase minimally; however, due to low sales and a high number of listings, prices will continue to be weaker than inflation.

A typical home in Halifax looks like:

Listing: Remax

Winnipeg

Average price: $270,605
Monthly mortgage payment: $1,179
Property tax: $274
Income required: $58,235

Housing prices in Winnipeg have increased year over year for the past 10 years. The CMHC forecasts that low mortgage rates as well as employment growth in the coming years will continue to foster housing demand. However, a higher number of new listings will bring competition to the market and moderate price increases.

A typical home in Winnipeg looks like:

Listing: Realtor.ca

Montreal

Average price: $344,273
Monthly mortgage payment: $1,500
Property tax: $237
Income required: $68,884

The annual income required to purchase an average-priced home in Montreal will likely remain close to $68,884, at least in 2015. As previously reported, Montreal experienced a flat market in the final quarter of 2014, and Royal LePage expects a minor growth of 0.6 per cent in 2015. This is especially low when compared to the 2.6 price increase from 2013 to 2014.

A typical home in Montreal looks like:

Listing: Passerelle Centris

Edmonton

Average price: $365,520
Mortgage payment: $1,592
Property tax: $244
Salary required: $72,617

Due to high demand and low supply, Edmonton has enjoyed a healthy real estate sector, making it one of the leading markets for price growth. Price gains may ease in 2015 due to fewer sales and an increase in new listings. Royal LePAge has predicted a 2.5-per-cent increase in house price growth in 2015.

A typical home in Edmonton looks like:

Listing: Realtor.ca

Ottawa

Average price: $357,887
Monthly mortgage payment: $1,559
Property tax: $336
Income required: $74,820

As it stands now, Ottawa residents need approximately $74,820 to own a home, but this number may increase in 2015. Royal LePage predicts home price growth of 1.8 per cent in 2015, slightly higher than the 1.3 per cent increase from 2013 to 2014.

A typical home in Ottawa looks like:

Listing: Realtor.ca

Calgary

Average price: $465,047
Mortgage mortgage payment: $2,026
Property taxes: $236
Income required: $88,578

According to a recent CMHC report, home prices in Calgary have been on the rise since 2010, particularly in 2013 and 2014. Factors contributing to Calgary's booming real estate market include strong economic, employment and wage growth as well as net migration. Royal LePage forecasts price growth of 2.4 per cent this year, which is moderate compared to the 5.4-per-cent increase from 2013 to 2014.

A typical home in Calgary looks like:

Listing: Realtor.ca

Toronto

Average price: $587,505
Monthly mortgage payment: $2,560
Property tax: $354
Income required: $113,009

The Greater Toronto Area boasts a strong economy and appreciating housing values. The main downside to the GTA's housing market is the cost of purchasing a home. If predictions are correct, the average housing price will increase considerably in 2015, as Toronto is expected to climb 4.5 per cent, outpacing all other markets in home price growth.

A typical home in Toronto looks like:

Listing: Realtor.ca

Vancouver

Average price: $819,336
Monthly mortgage payment: $3,570
Property tax: $251
Income required: $147,023

Vancouver is the most expensive housing market in Canada and more than double the amount of the national average housing cost. Thus, the annual income required to enter or remain in homeownership is significantly higher when compared to other major cities. According to Royal LePage, prices are expected to increase 2.8 per cent in 2015.

A typical home in Vancouver looks like:

Listing: Remax