Income needed to buy a home in Ottawa drops in July

The salary threshold dropped by more than $5,000 in Canada's two priciest markets, Toronto and Vancouver.

For homebuyers entering the market, some relief may be on the way as new numbers from Ratehub show the income needed to buy a home dipped in July for 13 major Canadian cities.

The salary threshold dropped by more than $5,000 in Canada's two priciest markets, Toronto and Vancouver.

In Ottawa, the average income needed to buy a home was $129,650 in July, down from $131,210 in June. It's a trend many are keen to see.

"The income has dropped because the interest rates have dropped," said Frank Napolitano, managing partner at Mortgage Brokers Ottawa.

"With interest rates coming down a half per cent now, we've seen fixed rates come down in that neighborhood close to a half per cent as well. That's made a big difference."

While the average cost of home prices also dropped for most of the country, Ottawa prices increased slightly, up $1,200 between June and July, more than offset by the interest rate cuts.

"If interest rates come down, as much as we hope they will over the next six and 12 months, then you'll see that that number will continue to come down as well," said Napolitano.