How Much House Can I Afford in Gatineau, Quebec?
Table of contents
Are you looking to buy a home in Gatineau, Quebec? Deciding how much home you can afford or what income you need to buy a home in Gatineau is a critical part of the process and should be thoroughly considered before making any decisions. Being aware of your budget will ensure that you make an informed decision that fits into your financial situation without over-stretching yourself. Read on to find out how much you can afford when buying a home in Gatineau, Quebec.
Key Highlights
- The median price of a single family home in Gatineau, Quebec was $563,543
- Affording a home in Quebec City depends on multiple factors, including current interest rates, credit score, down payment amount, and other financial obligations.
- You can generally qualify for a mortgage of around 3.5 to 4 times your annual gross income.
How Much Income Do You Need to Afford a Home in Gatineau, Quebec?
There are various factors to consider when determining how much income is needed to afford a home in Gatineau. Your mortgage term, current interest rates, and down payment will play a significant role when determining affordability. Higher mortgage rates increase overall borrowing costs, affecting affordability meaning your dollar won’t stretch as far as when rates are lower.
Additionally, the stress test will impact the income needed to qualify as it artificially inflates your interest rate to ensure you can still afford the home if interest rates should rise.
Personal factors will also impact what you can afford, such as your credit score, down payment amount, and other debts like credit cards, student loan balances and other financial obligations. Higher credit scores and a larger down payment can give you a better chance of qualifying for a mortgage and obtaining better rates.
Typically, you can qualify for a mortgage between 3.5 to 4 times your gross annual income. According to FSMIk, the average single-family home in Gatineau cost $428,000 in the first quarter of 2023. This is well below the national average of $716,083 and the provincial average of $477,117. You will need an annual income of approximately $80,000 to afford the average home in Gatineau. However, your qualifying amount will be based on personal factors like your down payment and lender guidelines, such as your debt-to-income ratios.
How Much House Can I Afford with a $70,000 Salary in Gatineau, Quebec
If you’re earning a $70,000 salary in Gatineau, a general rule of thumb is that you can qualify for a mortgage of 3.5 to 4 times your annual income.
With a $70,000 salary, you can likely afford a mortgage between $245,000 and $280,000.
Based on first-quarter data from Fenêtre Sur Le Marché Immobilier (FSMI), with a $70,000 salary, you could explore purchasing a condo in most of Gatineau’s metropolitan area.
With a larger down payment, you can also be looking at single family homes in the Buckingham/Masson-Angers region of Gatineau.
Buying a house with a $70k salary and great credit
You will qualify for the best rates if you have great credit, with a credit score of at least 680 or above.
With current interest rates on a $70,000 salary, you can afford a home with a maximum property price of approximately $200,000 with 5% down and $257,060 with 20% down.
To illustrate how much you can afford with a $70,000 salary and good credit, we used nesto’s mortgage affordability calculator.
- In this, we have run two scenarios, a 5% down payment and a 20% down payment, to highlight how affordability changes based on your available down payment. Inputs were left with estimates of $2,000 in property taxes and $100 in heating costs and assumed no other debts.
Buying a house with a $70k salary and poor credit
You may need to explore alternative lending options if you have a credit score below 660. It’s important to note that these mortgages will come with much higher interest rates. Interest rates from alternative lenders may be at least 2 to 3% higher than prime lenders and may include a 1% lender fee.
There are also options to get mortgages from private lenders, but they may have interest rates higher than 10% for applicants with poor credit. It’s also important to note that your monthly mortgage payment could double or triple with alternative or private lending as the interest rates are much higher.
The maximum property price you can afford is still approximately $302,000, as a 20% down payment is required for alternative lending. Though with this option, you may be able to extend the amortization up to 40 years, making monthly payments much more affordable. However, extended amortizations will come at the cost of paying more interest over the life of the mortgage.
How Much House Can I Afford with an $80,000 Salary in Gatineau, Quebec
If you’re earning an $80,000 salary in Gatineau, a general rule of thumb is that you can qualify for a mortgage of 3.5 to 4 times your annual income. With an $80,000 salary, you can likely afford a mortgage between $280,000 and $320,000.
- Based on first-quarter data from Fenêtre Sur Le Marché Immobilier (FSMI), with an $80,000 salary, you could explore purchasing a condo in the greater Gatineau metropolitan area. If your down payment permits, you could also explore single-family homes in the city’s Buckingham/Masson-Angers region.
Buying a house with an $80k salary and great credit
You will qualify for the best rates if you have great credit, with a credit score of at least 680 or above. With current interest rates on an $80,000 salary, you can afford a home with a maximum property price of approximately $293,638 with 5% down and $300,690 with 20% down.
To illustrate how much you can afford with an $80,000 salary and good credit, we used nesto’s mortgage affordability calculator. In this, we have run two scenarios, a 5% down payment and a 20% down payment, to highlight how affordability changes based on your available down payment. Inputs were left with estimates of $2,000 in property taxes and $100 in heating costs and assumed no other debts.
Buying a house with an $80k salary and poor credit
You may need to explore alternative lending options if you have a credit score below 660. It’s important to note that these mortgages will come with much higher interest rates. Interest rates from alternative lenders may be at least 2% to 3% higher than prime lenders and may include a 1% lender fee.
There are also options to get mortgages from private lenders, but they may have interest rates as high as 10% for applicants with poor credit. It’s also important to note that your monthly mortgage payment could double with alternative or private lending as the interest rates are much higher.
Buying a home with an $80,000 salary and poor credit won’t affect your qualifying mortgage amount as it will still be around $347,000, as a 20% down payment is required for alternative lending. Though with this option, you may be able to extend the amortization up to 40 years, making monthly payments much more affordable. However, extended amortizations will come at the cost of paying more interest over the life of the mortgage.
How Much House Can I Afford with a $90,000 Salary in Gatineau, Quebec
If you’re earning a $90,000 salary in Gatineau, a general rule of thumb is that you can qualify for a mortgage of 3.5 to 4 times your annual income. With a $90,000 salary, you can likely afford a mortgage between $315,000 and $360,000.
- Based on first-quarter data from Fenêtre Sur Le Marché Immobilier (FSMI), with a $90,000 salary, you could explore purchasing a condo in Gatineau or a single-family home in the Buckingham/Masson-Angers region.
If your down permits it, you could even shop for single-family homes in the central Gatineau region.
Buying a house with an $90k salary and great credit
You will qualify for the best rates if you have great credit, with a credit score of at least 680 or above. With current interest rates on a $90,000 salary, you can afford a home with a maximum property price of approximately $337,306 with 5% down and $345,821 with 20% down.
To illustrate how much you can afford with a $90,000 salary and good credit, we used nesto’s mortgage affordability calculator. In this, we have run two scenarios, a 5% down payment and a 20% down payment, to highlight how affordability changes based on your available down payment. Inputs were left with estimates of $2000 property taxes and $100 heating costs and assumed no other debts.
Buying a house with an $90k salary and poor credit
You may need to explore alternative lending options if you have a credit score below 660. It’s important to note that these mortgages will come with much higher interest rates. Interest rates from alternative lenders may be at least 2% to 3% higher than prime lenders and may include a 1% lender fee.
There are also options to get mortgages from private lenders, but they may have interest rates as high as 10% for applicants with poor credit. It’s also important to note that your monthly mortgage payment could double with alternative or private lending as the interest rates are much higher.
Buying a home with a $90,000 salary and poor credit won’t affect your qualifying mortgage amount, as it will still be around $392,000, as a 20% down payment is required for alternative lending. Though with this option, you may be able to extend the amortization up to 40 years, making monthly payments much more affordable. However, extended amortizations will come at the cost of paying more interest over the life of the mortgage.
How Much House Can I Afford with a $100,000 Salary in Gatineau, Quebec
If you’re earning a $100,000 salary in Gatineau, a general rule of thumb is that you can qualify for a mortgage of 3.5 to 4 times your annual income. With a $100,000 salary, you can likely afford a mortgage between $350,000 and $400,000.
- Based on first-quarter data from Fenêtre Sur Le Marché Immobilier (FSMI), with a $100,000 salary, you could explore purchasing a condo in Gatineau or a single-family home in the Buckingham/Masson-Angers and central Gatineau regions.
If your down payment permits, you could also expand your search and look for single-family homes in the Hull region as well.
Buying a house with an $100k salary and great credit
You will qualify for the best rates if you have great credit, with a credit score of at least 680 or above. With current interest rates on a $100,000 salary, you can afford a home with a maximum property price of approximately $379,975 with 5% down and $399,658 with 20% down.
To illustrate how much you can afford with a $100,000 salary and good credit, we used nesto’s mortgage affordability calculator. In this, we have run two scenarios, a 5% down payment and a 20% down payment, to highlight how affordability changes based on your available down payment. Inputs were left with estimates of $2000 property taxes and $100 heating costs and assumed no other debts.
Buying a house with an $100k salary and poor credit
You may need to explore alternative lending options if you have a credit score below 660. It’s important to note that these mortgages will come with much higher interest rates. Interest rates from alternative lenders may be at least 2% to 3% higher than prime lenders and may include a 1% lender fee.
There are also options to get mortgages from private lenders, but they may have interest rates as high as 10% for applicants with poor credit. It’s also important to note that your monthly mortgage payment could double with alternative or private lending as the interest rates are much higher.
Buying a home with a $100,000 salary and poor credit won’t affect your qualifying mortgage amount, as it will still be around $437,000, as a 20% down payment is required for alternative lending. Though with this option, you may be able to extend the amortization up to 40 years, making monthly payments much more affordable. However, extended amortizations will come at the cost of paying more interest over the life of the mortgage.
Average Salary in Gatineau, Quebec
The average salary in Gatineau, Quebec is $54,700 annually. This average is 0.5% higher than the national average. Homeowners who earn in this range pay approximately $1,375 in monthly mortgage costs.
Median Home Price and Average Rent in Gatineau, Quebec
The median home price in Gatineau, Quebec is $563,543, while monthly rent sits at $971. Using nesto’s mortgage payment calculator, we can determine that a home priced at $563,543 with a 20% down payment will come to $2658 in monthly mortgage payments.
Factors To Determine Your Home Affordability
Your Credit Score
Your credit score gives lenders an overall picture of your ability to repay all debts consistently and is a strong indicator of your overall financial health. Lenders will use your credit score to assess the amount of risk in lending you money. Generally, the better your credit score, the easier it is to qualify for a mortgage and get a better interest rate.
Your Debt-to-Income Ratio
Debt-to-income ratios test borrowers’ ability to service their total and household debts. There are two ratios Gross Debt Service, or GDS – which measures the ability to manage household debt, and Total Debt Service or TDS – which measures the ability to manage the GDS plus any other debts. On the high-ratio default-insured mortgage side, CMHC guidelines limit the GDS to a maximum of 39% and TDS to a maximum of 44% of the borrower’s income.
Your Savings
How much you have saved and how much you plan to put down as a down payment will affect your affordability and monthly payments. A larger down payment of 20% or more of the purchase price will mean you have a smaller mortgage and lower payments, while a smaller down payment of anything less than 20% will mean you have a larger mortgage and higher monthly payments. You will also be required to purchase mortgage default insurance if you put down less than 20%.
Your Neighbourhood Preferences
Home prices can vary depending on the location, so your preferred neighbourhood may have more expensive homes for sale when compared to other areas of the city. Checking comparables and exploring other neighbourhoods and the real estate they offer can be a great option to find more affordable homes. Sometimes, expanding your search to a few streets can be enough to see a price difference.
Find a better rate, and we’ll match it, beat it, or give you $500*.
*Conditions Apply
With nesto, it’s stress-free
Home Financing Options In Gatineau
Choosing A Mortgage Lender
Choosing a lender is just as important as shopping for a home. Lenders can be anything from financial institutions, banks, and credit unions to individuals that provide mortgages. Each lender will have criteria for approval that will vary depending on the type of lender, how they are regulated and their risk appetite. Depending on your qualifying factors, the type of lender you choose may be either a prime, subprime, or private lender.
Choosing To Self-Finance Your Mortgage
If you have the funds to do so and want to avoid going the traditional mortgage route and paying interest, you could pay cash for a home in Gatineau. Of course, this would require that you have significant savings available to purchase the home mortgage free. But the best part is that you won’t have to pay any interest on this money!
Final Thoughts
With an average price currently at $563,000, Gatineau,Quebec may be one of the more affordable urban centers left to explore if you are looking to purchase a home. Getting a pre-approval or pre-qualification before you start your search can help you figure out exactly how much you could afford so you can start shopping and stay within budget. Speak with one of nesto’s commission-free mortgage experts, who will help guide you through your mortgage financing process.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
