Salary and Real Estate Market: The Income Necessary to Acquire a Property

- Mario Conte - December 1, 2023

Acquiring housing in Montreal represents a significant financial challenge. According to recent data from Ratehub, a Montreal resident must have an annual income greater than $100,000 to consider purchasing a property.

As of September 2023, the average housing price in the city was $518,600, requiring an annual income of $116,220 for a comfortable purchase, taking into account a 20% down payment, a mortgage over 25 years, as well as the annual costs of property taxes and heating.

This financial requirement is not isolated to Montreal. Other Canadian cities have similar or even higher salary requirements for purchasing a home. For example, Calgary and Ottawa require an income of $123,000 and $140,650 respectively. At the other end of the spectrum, Vancouver and Toronto stand out with astronomical income requirements of $250,000 and $235,000 respectively.

Interestingly, despite a slight drop in average house prices between August and September 2023 in these ten cities, the salary required for a real estate purchase continued to increase. For example, in Montreal, although the price fell by $3,000, the necessary income increased by $1,540.

Impact of Interest Rates on Financial Accessibility

Philippe Simard, mortgage director in Quebec at, underlines the significant impact of even minor fluctuations in interest rates on the financial accessibility of housing. Declining housing values have not led to greater affordability, a reality reflected in data from August to September 2023.

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