The quarterly Housing Affordability Monitor by the National Bank of Canada has been released and found that housing affordability has worsened in Canada, with the average mortgage payment consuming 45% of household income.
In Toronto, the average house sold for $1,146,667, which means that the home buyer needs to have a household income of $196,913. In regards for a condo, the average price in Toronto is $652,308, which translates to a household income of $131,387.
Mortgage payments in Toronto is costing 65.6% of their income, up 5.4% from the previous quarter. Toronto condo owners is costing 37.3% of their income, up 2.4% quarter-over-quarter.
“Income growth and lower interest rates were conducive to improving affordability for most of the past two years. That is no longer the case in 2021, as income growth is being easily outpaced by home price increases, while mortgage interest rates also rose on a quarterly basis,” says the report.