Here’s how much you need to earn to buy a home in Ottawa

A new home is displayed for sale, in Ottawa on Tuesday, July 14, 2020. After fuelling Canada's economy through the COVID-19 pandemic, the real estate market is showing signs of weakness as home prices fall and bidding wars dissipate. THE CANADIAN PRESS/Sean Kilpatrick

The annual income required to buy a home in Ottawa increased $790 in January, as home prices increased in Ottawa and across Canada.

A new report from Ratehub.ca, an online mortgage brokerage service, shows the average income required to buy a new home in Ottawa was $141,420 in January, up from $140,630 in December.

According to the report, the average home price in Ottawa increased from $645,800 in December to $649,900 in January.

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Ratehub.ca looks at the income required to purchase a new home in Ottawa, with a mortgage rate of 4.7 per cent and a stress test rate of 6.7 per cent. The income is based on a mortgage with a 20 per cent downpayment and a 25-year amortization.

The report notes the income required to purchase a home increased in 12 major Canadian markets, including Toronto, Vancouver and Montreal.

“Home affordability conditions worsened across Canada in January, as fixed mortgage rates stabilized and home prices rose in many of the nation’s major markets,” the report says.

Vancouver has the highest income required to purchase an average-priced home, with an income of $243,300 required to buy a home. The income required to buy a home increased $300 in January compared to December.

The average income required to buy a home in Toronto is $223,290, up $1,640 from December.

Hamilton had the highest increase in income required to buy a home, with the income required at $174,450 in January compared to $170,400 in December.