Buying a home in Canada in 2023 may seem like a challenge with the recent Bank of Canada interest rate hike. But how much money do you need to make to get a mortgage in Canada?
The answer depends on the market and the type of property you are looking for. However, a recent RBC report on home affordability shows that buyers are facing higher costs of ownership in all of the markets monitored.
Despite all this, it is always advisable to resort to a mortgage broker in canada Which can give you a more specific and detailed overview of the current market situation, in addition to comparing it with your financial situation to achieve the objectives you set.
Higher mortgage rates require deep pockets, and with the Bank of Canada’s eighth consecutive key rate hike, the situation has become more challenging. The current rate of 4.5% is the highest since 2007.
Given this situation, here’s a look at how much you need to earn to get approved for a mortgage in major cities across Canada.
How much money is needed for a mortgage in Canada?
Mortgage approval largely depends on a number of factors, including the desired location of purchase, the amount of deposit available and the cost of the target property.
The income required to obtain a mortgage can range from $73,752 to $268,000 in major Canadian cities, meaning there is a wide range of possibilities.
The RBC report takes a more detailed look at each province, giving you a clear understanding of income requirements and determining whether buying a home in your area is realistic.