Income needed to buy a home rises in most major markets: analysis
BNN Bloomberg
A new analysis found that the level of income required to own a home rose in 12 out of 13 major markets across Canada from January to February.
In a report Wednesday, Ratehub.ca calculated the minimum annual income levels required to purchase a house in a number of Canada’s major cities based on real estate data. The report found that slight reductions in mortgage rates have occurred alongside rises in home prices.
“The two key variables, which are home values and interest rates, have moved in opposite directions since January; interest rates are down and home values are up in 12 out of 13 cities,” James Laird, the co-CEO of Ratehub.ca and president of CanWise mortgage lender, said in a statement Wednesday.
“The increase in home values was enough such that affordability decreased in 11 of 13 cities despite the rate drop.”
