Shutterstock / Alamy
BuzzBuzzHome: Earlier this year, RBC Economics released their housing affordability report for the last quarter of 2013. Affordability saw a modest improvement in the last days of the year, but the financial institution warned that conditions in 2014 could worsen.
It looks like their prediction is already coming true.
We covered the new Q1 2014 report from RBC, which pointed to a picture of eroding affordability in Canada. But we wanted to look at little bit closer at how qualifying income has changed in major cities. It’s where the affordability issue is felt the most, especially for would-be buyers dreaming of a single-family home in Toronto, Vancouver or Calgary, markets that have seen recent momentum.
RBC defines qualifying income as the minimum annual income used by lenders to measure the ability of a borrower to make mortgage payments. Typically, that amounts to no more than 32 per cent of a borrower’s gross annual income.
In Vancouver, Canada’s most expensive real estate market, the qualifying income for a standard two-storey house was $162,900, the second-highest amount recorded for the city over the past 11 quarters. Toronto and Calgary both reached new heights, rising to $139,400 and $98,300 respectively. In the last quarter, Calgary also overtook Ottawa for the first time, with the nation’s capital seeing a slight decrease in qualifying income to $93,500.
Here are the minimum qualifying incomes to buy a home in Canada's six largest markets. Read the rest of the analysis and check out interactive graphics on home affordability at BuzzBuzzHome.
How Much Income It Takes To Buy A House In These Cities
Montreal: $85,600(01 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $65,400For a condo: $51,300Source: RBC (credit:Shutterstock)
Edmonton: $85,700(02 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $75,800For a condo:Source: RBC (credit:Getty)
Nationwide: $92,200(03 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $81,200For a condo: $52,400Source: RBC (credit:CP)
Ottawa: $93,500(04 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $89,300For a condo: $60,600Source: RBC
Calgary: $98,300(05 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $96,700For a condo: $57,200Source: RBC (credit:Alamy)
Toronto: $139,400(06 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $119,800For a condo: $73,000Source: RBC
Vancouver: $162,900(07 of160)
Minimum qualifying income for a standard two-storey home.For a detached bungalow: $155,100For a standard condo: $75,100Source: RBC (credit:CP)
Toronto: $520,000(08 of160)
With the number of bedrooms in this house listed as "zero," it's pretty clear this former dental clinic in Toronto's East York is a pretty small house. The realtor boasts of "easy access" to highways (it's near the Don Valley Parkway) and transit. (credit:Realtor.ca)
Toronto: $520,000(09 of160)
With the number of bedrooms in this house listed as "zero," it's pretty clear this former dental clinic in Toronto's East York is a pretty small house. The realtor boasts of "easy access" to highways (it's near the Don Valley Parkway) and transit. (credit:Realtor.ca)
Toronto: $520,000(10 of160)
With the number of bedrooms in this house listed as "zero," it's pretty clear this former dental clinic in Toronto's East York is a pretty small house. The realtor boasts of "easy access" to highways (it's near the Don Valley Parkway) and transit. (credit:Realtor.ca)
New Westminster, B.C.: $579,000(11 of160)
The house may only have 726 square feet, but the spacious 60-foot-by-140-foot lot means you can potentially build two new homes on the spot, and that's pretty much this property's main selling point. (credit:Realtor.ca)
Surrey, B.C.: $539,000(12 of160)
The realtor selling this one doesn't even pretend the house is good value for money -- this house is "lot value only," is an opportunity for developers or investors to build something new on the land. (credit:Realtor.ca)
Surrey, B.C.: $539,000(13 of160)
The realtor selling this one doesn't even pretend the house is good value for money -- this house is "lot value only," is an opportunity for developers or investors to build something new on the land. (credit:Realtor.ca)
Toronto: $519,000(14 of160)
It may be super narrow, but this house in north Toronto actually has two stories and three bedrooms. It has a walk score of 90, so if avoiding traffic jams is your thing this could actually be something of a decent bargain... (credit:Realtor.ca)
Toronto: $519,000(15 of160)
It may be super narrow, but this house in north Toronto actually has two stories and three bedrooms. It has a walk score of 90, so if avoiding traffic jams is your thing this could actually be something of a decent bargain... (credit:Realtor.ca)
Toronto: $519,000(16 of160)
It may be super narrow, but this house in north Toronto actually has two stories and three bedrooms. It has a walk score of 90, so if avoiding traffic jams is your thing this could actually be something of a decent bargain... (credit:Realtor.ca)
Toronto: $430,000(17 of160)
This house is a little less expensive than the others on this list, but it's here to illustrate just how little $430,000 will get you in Toronto these days. Two bedrooms in this house, but the realtor says you can still rent out the basement. (credit:Realtor.ca)
Toronto: $430,000(18 of160)
This house is a little less expensive than the others on this list, but it's here to illustrate just how little $430,000 will get you in Toronto these days. Two bedrooms in this house, but the realtor says you can still rent out the basement. (credit:Realtor.ca)
Toronto: $430,000(19 of160)
This house is a little less expensive than the others on this list, but it's here to illustrate just how little $430,000 will get you in Toronto these days. Two bedrooms in this house, but the realtor says you can still rent out the basement. (credit:Realtor.ca)
New Westminster, B.C.: $448,000(20 of160)
Someone managed to squeeze four bedrooms into this little home in the Vancouver suburb of New West, but the realtor still sees building a new home on the spot as a good option. (credit:Realtor.ca)
New Westminster, B.C.: $448,000(21 of160)
Someone managed to squeeze four bedrooms into this little home in the Vancouver suburb of New West, but the realtor still sees building a new home on the spot as a good option. (credit:Realtor.ca)
New Westminster, B.C.: $448,000(22 of160)
Someone managed to squeeze four bedrooms into this little home in the Vancouver suburb of New West, but the realtor still sees building a new home on the spot as a good option. (credit:Realtor.ca)
Toronto: $549,000(23 of160)
Two bedrooms in this little house but the real value is the land -- it has a 110-foot long lot, which on Toronto's inner east side is a sizable chunk of land. (credit:Realtor.ca)
Toronto: $549,000(24 of160)
Two bedrooms in this little house but the real value is the land -- it has a 110-foot long lot, which on Toronto's inner east side is a sizable chunk of land. (credit:Realtor.ca)
Toronto: $549,000(25 of160)
Two bedrooms in this little house but the real value is the land -- it has a 110-foot long lot, which on Toronto's inner east side is a sizable chunk of land. (credit:Realtor.ca)
Victoria, B.C.: $469,900(26 of160)
Just because a house is tiny and overpriced doesn't it can't be colourful and meticulously decorated. Check out this little three-bedroom place in Victoria's inner city. The realtor boasts that the yard has a "really big organic garden -- no GMO seeds or chemicals used in 100 years." Yes, this must be British Columbia. (credit:Realtor.ca)
Victoria, B.C.: $469,900(27 of160)
Just because a house is tiny and overpriced doesn't it can't be colourful and meticulously decorated. Check out this little three-bedroom place in Victoria's inner city. The realtor boasts that the yard has a "really big organic garden -- no GMO seeds or chemicals used in 100 years." Yes, this must be British Columbia. (credit:Realtor.ca)
Victoria, B.C.: $469,900(28 of160)
Just because a house is tiny and overpriced doesn't it can't be colourful and meticulously decorated. Check out this little three-bedroom place in Victoria's inner city. The realtor boasts that the yard has a "really big organic garden -- no GMO seeds or chemicals used in 100 years." Yes, this must be British Columbia. (credit:Realtor.ca)
Toronto: $499,000(29 of160)
Would you believe this house has two apartments in it? There's a three-bedroom unit upstairs and a two-bedroom unit in the basement. With a monthly rental income of around $2,500, you won't cover the mortgage on it, but an investor could make some money. (credit:Realtor.ca)
Toronto: $499,000(30 of160)
Would you believe this house has two apartments in it? There's a three-bedroom unit upstairs and a two-bedroom unit in the basement. With a monthly rental income of around $2,500, you won't cover the mortgage on it, but an investor could make some money. (credit:Realtor.ca)
Toronto: $499,000(31 of160)
Would you believe this house has two apartments in it? There's a three-bedroom unit upstairs and a two-bedroom unit in the basement. With a monthly rental income of around $2,500, you won't cover the mortgage on it, but an investor could make some money. (credit:Realtor.ca)
Surrey, B.C.: $539,000(32 of160)
The realtor on this property doesn't even pretend the house is godo value for money. This is "lot value only," and presents an opportunity for investors and developers. Two bedrooms and two baths in the current house on the site. (credit:Realtor.ca)
Toronto: $549,995(33 of160)
Two bedrooms and two bathrooms in this house on the city's east side. There's also a finished basement. (credit:Realtor.ca)
Toronto: $549,995(34 of160)
Two bedrooms and two bathrooms in this house on the city's east side. There's also a finished basement. (credit:Realtor.ca)
Toronto: $549,995(35 of160)
Two bedrooms and two bathrooms in this house on the city's east side. There's also a finished basement. (credit:Realtor.ca)
Newfoundland and Labrador: $1.85 million(36 of160)
This six-bedroom home in St. John’s, constructed over 100 years ago, boasts beautiful original features like beveled glass and “intricate” plaster work, as well as modern additions, such as “spa inspired ensuites with in-floor heated marble,” according to the listing. (credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(37 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(38 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(39 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(40 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(41 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(42 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(43 of160)
(credit:Kijiji.ca)
Newfoundland and Labrador: $1.85 million(44 of160)
(credit:Kijiji.ca)
New Brunswick: $2.9 million(45 of160)
This is actually two finished houses on 235 acres of land near St-Francois, N.B., and it's definitely one of those properties that look better on the inside than the outside. Vaulted ceilings and fireplaces adorn this building, which also boasts long walks in the woods -- on the property. (credit:Realtor.ca)
New Brunswick: $2.9 million(46 of160)
(credit:Realtor.ca)
New Brunswick: $2.9 million(47 of160)
(credit:Realtor.ca)
New Brunswick: $2.9 million(48 of160)
(credit:Realtor.ca)
New Brunswick: $2.9 million(49 of160)
(credit:Realtor.ca)
New Brunswick: $2.9 million(50 of160)
(credit:Realtor.ca)
Saskatchewan: $3.8 million(51 of160)
A place like this in Vancouver or Toronto could easily run you a cool $10 million, but in Regina all it takes is $3.8 million (pocket money, right?). This six-bedroom, four-bath property has parking space for no fewer than six cars and has more than 6,000 square feet of living space, including some pretty breathtaking staircases and foyers, and one heck of a billiard room. (credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(52 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(53 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(54 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(55 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(56 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(57 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(58 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(59 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(60 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(61 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(62 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(63 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(64 of160)
(credit:Re/Max via myvisuallistings.com)
Saskatchewan: $3.8 million(65 of160)
(credit:Re/Max via myvisuallistings.com)
Manitoba: $4.75 million(66 of160)
This place is huge -- more than 13,000 square feet of living space in this five-bedroom, nine-bath house in Winnipeg. The house features 24-foot ceilings, a wine cellar, wet bar, media room and gym. There are also numerous terraces, an infinity spool, spa and gazebo. You could almost start a fitness club out of this place. (credit:Realtor.ca)
Manitoba: $4.75 million(67 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(68 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(69 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(70 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(71 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(72 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(73 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(74 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(75 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(76 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(77 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(78 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(79 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(80 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(81 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(82 of160)
(credit:Realtor.ca)
Manitoba: $4.75 million(83 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(84 of160)
This unique property in Ketch Harbour, N.S. has been having a hard time selling; it's made HuffPost's most expensive houses list twice before. But the property recently received a boost in the form of a feature article in Architectural Digest. The location is certainly unique; just look at the photos. There are three bedrooms and five baths in this 6,000-square-foot house. (credit:Realtor.ca)
Nova Scotia: $6.7 million(85 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(86 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(87 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(88 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(89 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(90 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(91 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(92 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(93 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(94 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(95 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(96 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(97 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(98 of160)
(credit:Realtor.ca)
Nova Scotia: $6.7 million(99 of160)
(credit:Realtor.ca)
P.E.I.: $6.95 million(100 of160)
This 13,500-square-foot house sits on the north shore of P.E.I. (Anne of Green Gables country) and boasts 11 acres of land, a custom design by "a nationally renowned American architect," six bedrooms and nine baths. (credit:Realtor.ca)
P.E.I.: $6.95 million(101 of160)
P.E.I.: $6.95 million(102 of160)
P.E.I.: $6.95 million(103 of160)
P.E.I.: $6.95 million(104 of160)
P.E.I.: $6.95 million(105 of160)
P.E.I.: $6.95 million(106 of160)
P.E.I.: $6.95 million(107 of160)
P.E.I.: $6.95 million(108 of160)
P.E.I.: $6.95 million(109 of160)
P.E.I.: $6.95 million(110 of160)
P.E.I.: $6.95 million(111 of160)
P.E.I.: $6.95 million(112 of160)
P.E.I.: $6.95 million(113 of160)
Alberta: $12.7 million(114 of160)
This house, an Architectural Digest showpiece, sits in the foothills of the Rockies in Canmore "amid snow-tipped mountains and vast forest parkways," the realtor boasts. The property features "outdoor living rooms" to take in the scenery, a great hall with totem poles, a two-story library and no fewer than five fireplaces. There are six bedroom as well.
Alberta: $12.7 million(115 of160)
Alberta: $12.7 million(116 of160)
Alberta: $12.7 million(117 of160)
Alberta: $12.7 million(118 of160)
Alberta: $12.7 million(119 of160)
Alberta: $12.7 million(120 of160)
Alberta: $12.7 million(121 of160)
Alberta: $12.7 million(122 of160)
Alberta: $12.7 million(123 of160)
Alberta: $12.7 million(124 of160)
Alberta: $12.7 million(125 of160)
Alberta: $12.7 million(126 of160)
Alberta: $12.7 million(127 of160)
Alberta: $12.7 million(128 of160)
Alberta: $12.7 million(129 of160)
Alberta: $12.7 million(130 of160)
Alberta: $12.7 million(131 of160)
Alberta: $12.7 million(132 of160)
Alberta: $12.7 million(133 of160)
Quebec: $25 million(134 of160)
This is a "gated estate" featuring a main residence and three guest houses. Among its features is an integrated "whole house" sound system, a dock on Lake Memphremagog, and parking spaces for 65 cars. Yes, 65. (credit:Centris.ca)
Quebec: $25 million(135 of160)
Quebec: $25 million(136 of160)
Quebec: $25 million(137 of160)
Quebec: $25 million(138 of160)
Quebec: $25 million(139 of160)
Quebec: $25 million(140 of160)
Quebec: $25 million(141 of160)
Quebec: $25 million(142 of160)
Quebec: $25 million(143 of160)
Quebec: $25 million(144 of160)
Quebec: $25 million(145 of160)
Quebec: $25 million(146 of160)
Quebec: $25 million(147 of160)
Quebec: $25 million(148 of160)
Quebec: $25 million(149 of160)
Quebec: $25 million(150 of160)
Quebec: $25 million(151 of160)
Quebec: $25 million(152 of160)
Quebec: $25 million(153 of160)
Quebec: $25 million(154 of160)
Quebec: $25 million(155 of160)
Quebec: $25 million(156 of160)
Quebec: $25 million(157 of160)
Ontario: $25.8 million(158 of160)
The most expensive house in Ontario is on sale half-finished. This property in Toronto's ritzy Bridle Path neighbourhood features a whopping 24,000 square feet of living space on two acres of land -- quite a lot, given it's in Toronto. It has a grand ballroom with 23-foot ceilings, and two elevators. Also, seven bedrooms and 14 baths. Sadly, not many pictures of this property are available. (credit:Barry Cohen Homes)
British Columbia: $35 million(159 of160)
$35 million is a ton of money for a house, but technically, this is two houses -- both sides of this duplex are for sale together. Located in Vancouver's wealthy Shaugnessy Heights district, the property can remain as two houses or be integrated into one -- in which case it's a 12,200-square-foot house with nine bedrooms, 13 bathrooms, nine fireplaces and an elevator. Sorry, no interior shots of the property are available, but we're willing to bet it's pretty awesome. (credit:Realtor.ca)
British Columbia: $35 million(160 of160)