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A new survey has found that Calgary ranks among the most affordable housing markets in Canada for renters looking to purchase a first home.
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The study by Point2, an online real estate marketplace, looked at 50 Canadian municipalities, determining what percentage of renter household income is required to purchase a starter home in each city.
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Calgary ranked the 11th among most affordable cities for renters with an annual household income averaging about $69,000.
That is five per cent more than the income required — about $65,000 — to purchase a starter home in the city, estimated at about $274,4000. The calculation, Point2 notes, is based on a 20 per cent down payment with a fixed, five-year mortgage at 5.75 per cent.
As well, the monthly mortgage payment could not exceed 30 per cent of renter income.
Overall, Calgary had the highest average renter income among Canadas’s most affordable cities, only surpassed by Edmonton.
Alberta’s capital also topped the list for the most affordable city for renters seeking to purchase a starter home.
In Edmonton, the average household renter income is nearly $71,000 per year, which is 52 per cent higher than the average income required to qualify for a mortgage to buy a starter home ($185,500).
While Edmonton was the most affordable for renters looking to buy, Richmond Hill, Ont., was the costliest city in Canada for renters looking to purchase a starter home.
There, renter income was about $70,000 per year, which was 59 per cent less than the average income required to purchase a starter home with a price tag around $740,000. In turn, a buyer in the municipality within the Greater Toronto Area must have a minimum annual income of nearly $170,000.
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