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Homes in Montreal's Plateau-Mont-Royal borough.

Homes in Montreal's Plateau-Mont-Royal borough.

Buying a home for sale in Montreal requires a completely ridiculous amount of wealth, according to a new report from Ratehub.ca. Using a calculation of June 2022 mortgage rates, average home prices and property taxes, the mortgage broker compiled estimates of the annual income residents in 10 Canadian cities need to buy a local property.

In Montreal, the income estimate is a whopping $110,900, up 17% ($15,830) since March.

Ratehub.ca put the average Montreal home price at $546,800 in June. With a 20% down payment, an estimate mortgage for a home of that price would total $447,430.

Ratehub.ca then applied the average of the so-called Big Five Banks' (RBC, BMO, CIBC, Scotiabank and TD) five-year fixed mortgage rates.

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The income calculations also assume a 25-year mortgage payment period, $4,000 in annual property taxes and $150 a month for heating.

Unsurprisingly, the income needed to buy an average home in Montreal in June was less than half those in Vancouver and Toronto: $231,950 and $226,500, respectively — the highest among the cities Ratehub.ca included in its report.

The others were Winnipeg (where the required income was "just" $78,270), Edmonton ($86,770), Calgary ($108,050), Halifax ($110,580), Ottawa ($137,050), Hamilton ($179,060) and Victoria ($187,980).

In all cases, Ratehub.ca's income calculation was higher — by between $8,660 and $35,760 — for June than it was for March. But there is some good news despite the nauseatingly high figures: home prices decreased in Hamilton, Ottawa, Toronto, Vancouver and Winnipeg in the same three-month period.

But Ratehub.ca says prices will need to "drop significantly further" to counteract increasing mortgage rates.

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