The average income needed to buy a home in Cambridge is sitting right around $200k.
According to popular personal finance website, HelloSafe, a 1,500 sq/ft home in the region would require a household income of slightly more than $200,000.
A 1,500 sq/ft home typically has between two to three bedrooms and is considered a mid-sized home. These are usually town homes and smaller detached houses.
This is calculated based on the assumption of a mortgage loan taken out in Ontario with the buyer contributing between five per cent and 20 per cent for a down payment, a fixed rate for five years of 4.89 per cent over a total period of 25 years.
The average income is then decided with a debt-to-income ratio of 36 percent of disposable net income.
"Ontario's real estate market has reached unprecedented heights, with soaring prices that have left both experts and aspiring homeowners astounded," said Alexandre Desoutter, editor-in-chief for HelloSafe Canada in a press release.
The combination of limited housing supply, growing demand fuelled by population growth, and high interest rates has created a perfect storm, propelling property values to astronomical levels.
While the average price for a detached home in Cambridge is currently down year-over-year from $900,000 in 2022 to $821,000 as of April 2023, interest rates are forcing homeowners to pay more per month for less expensive homes.
So despite a cheaper sticker price for a home, the buyer will need a higher income to keep up with rising interest rates and experts don't see them coming down anytime soon.
Cambridge is in the middle of the pack in Ontario while at the high end of the housing market in Toronto household incomes needed to buy a 1,500 sq/ft home need to be an average of $591,828. Timmins is the low end with average household income at $64,896 to buy the same sized home.
