We're all pretty much aware that the cost of housing varies dramatically from one Canadian city to the next. In Toronto and Vancouver the prices are basically out of control. The cost of housing in many other cities across the country, however, is much more reasonable.
In order to afford a home in Vancouver, for example, you'll need to show proof of income that is equivalent to approximately $152,145. The average home price in that city is $810,600. If you're thinking about moving to Richmond, BC, you'll need to be making $99,641 to afford an average home priced at $490,377. You'll need to dig deep into your pockets, however, if you want to call West Vancouver your home since the average price for a home there is $1,757,700 and you should be making at least $320,932.
In Toronto, the average home price is $630,858 and you'll need to show an income of approximately $126,530 to get approved for a mortgage. If you head a bit southwest of there and decide to buy a home in Kitchener-Waterloo, you'll only need to be earning $72,946 yearly to be approved for a $337,386 home in that city. A few hours southwest of Kitchener-Waterloo you'll find some housing price relief in Windsor where the average home price is only $186,612. To afford a home here you could be making as low as $44,888 annually.
In Calgary, you should be making $87,761 to afford the average price of a home at $443,744. Our neighbors just north of us in Edmonton will be looking at average home prices of $359,392 and will need to an income of $74,817 in order to afford a home.
One of the cheapest Canadian cities to purchase a home is Trois-Rivieres, Quebec where the average price of a home is $160,064. In order to afford a home here you should be able to prove an annual salary of $39,379. If you want to live on the East Coast the average home pricing in Newfoundland and Labrador is $282,350 while it is $280,035 in Halifax.
The income amounts are based on a gross debt 32% service ratio and a fixed-rate 5-year mortgage at 2.74% with a down payment of 5%.