Canadian Housing Outlook Moving Out Of Reach

Mortgage rates might be low, but nosebleed home prices still make payments difficult. National Bank of Canada (NBC) data shows the household income required to carry a mortgage on a typical home in Q4 2020. The numbers in some regions are staggering, before even considering downpayments. In Toronto or Vancouver, the middle class can no longer pay for a non-condo home.

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The first hurdle to buying a home in Canada is getting much higher – saving for a downpayment. A National Bank of Canada (NBC) analysis shows it took a record number of months to save a downpayment in Q4 2020. Households need to save for the longest period in history, passing even the late 1980s bubble. The national record is still just a fraction of what’s needed in Toronto and Vancouver.

The Bottom Fifth Of Households Can’t Afford To Even Rent In Toronto And Vancouver

The lowest quintile, the bottom 20% of households by income, have few options for housing. Both Toronto and Vancouver have only had 0.2% of rentals affordable for this demographic. Montreal is a little better with 15.3% of rental affordable to this quintile. Calgary has a drop off, with only 10.7% of housing affordable for their lowest income level. In all cases, there’s insufficient housing for this particular demographic. In Toronto and Vancouver, don’t even bother moving there if you’re going to be at this income level.