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Canada’s housing affordability declines the most in 27 years.

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Canada’s housing affordability declines the most in 27 years. A mortgage for the average home in Canada will cost Canadians more than half of their household income for the first time since the mid-1990s. The National Bank of Canada (NBC) noted in its latest Housing Affordability Monitor report that housing affordability in Canada has worsened for the fifth consecutive quarter. In comparison to the previous quarter, the MPPI (mortgage payment as a proportion of income) for a typical home increased by 4.9 percentage points. This is the worst quarter in more than 27 years of declines in the stock market. All ten major markets studied by NBC were found to have decreased in affordability, with the exception of Victoria, Toronto, and Vancouver. “Over the last 12 months, the worsening in affordability was the nastiest in 40 years,” said the report. “For the first time since 1994, it would take more than 50 percent of income for a representative household to service the mortgage on a representative home in Canada’s main urban centres.” “Headwinds will continue to blow against Canada’s real estate market in the months ahead with the Bank of Canada pursuing its monetary policy normalization process through higher policy rates and quantitative tightening,” further said the report. In Q1-2022, rising property prices and rising interest rates were cited as the two key factors that contributed to Canada’s deteriorating housing affordability. Since Q3-2013, NBC’s 5-year benchmark mortgage rate has jumped 46 bps in Q4-2021, the highest one-quarter change since that period. By choosing variable-rate mortgages in recent months, most homebuyers have been able to escape large price rises, but the terms of these mortgages are becoming less attractive. Because of this, the resale market has been affected. The worst losses in affordability have struck Canada’s major cities the hardest. The most severe drops in affordability were seen in the largest and most costly cities in Canada during the first quarter of 2002. For the third quarter in a row, Victoria recorded the highest annual decline in its MPPI, which rose by 19.6 percentage points. As a direct consequence of this, Victoria’s MPPI reached 80%, which represents the highest level for the city since the second quarter of 2008. The MPPI in Victoria experienced an increase of 8.5 percentage points on a quarterly basis. The MPPI increased to 85.7 percent for non-condos and to 44.2 percent for condos, representing respective increases of 9.3 percent and 4.1 percent from the previous quarter. At the moment, the yearly household income required to afford a non-condo in Victoria is $204,078 whereas the annual household income required to afford a condo in Victoria is $123,747. At an annual savings rate of 10%, it would take 382 months (31.8 years) to save up enough money for a downpayment on a house that is not a condo, while it would only take 58 months (4.8 years) to save up enough money for a condo. In the same province, the city of Vancouver had a significant decline in its affordability as a result of the MPPI’s seven-point increase during the first quarter of 2018, an acceleration that hasn’t been seen in the records since the year 1994. The typical monthly mortgage payment in Vancouver now takes up 81.4 percent of the city’s median salary, making it the most expensive city in Canada in which to purchase a property. The Vancouver Multiple Property Index (MPPI) surged by nine percent quarterly to reach 101.5 percent for properties that were not condos. Meanwhile, the MPPI for condos rose by 3.2 percent to reach 43.4 percent. If you want to buy a house that isn’t a condo in the largest city in British Columbia, you’ll need an annual income of at least $285,078; if you want to buy a condo, you’ll need an annual income of at least $142,357. In the event that you intend to save up for a down payment, it will take you approximately 452 months (37.6 years) and 63 months (5.25 years) of savings at a rate of 10% to be able to afford a non-condo or condo residence, respectively. In Toronto, the situation is not significantly better than it was before. The city saw the largest quarterly decline in affordability since 1994 during the first quarter of 2012, as the MPPI increased by 8.1 percentage points to reach its highest level since 1990. The median price per square foot index (MPPI) for non-condo properties rose by 8.9 percent quarterly to 81.5 percent, while the same gauge increased by 4.2 percent for condo properties to an MPPI of 44.2 percent. Homebuyers in Toronto need an annual income of $228,100 to be able to afford the typical house that is not a condo. This figure is significantly more than the required amount of finances, which is only $144,644 for a condo. It would take around 363 months (30.2 years) to save up enough money for a down payment on a house that is not a condo, while it would only take 64 months (5.3 years) to save up enough money for a down payment on a condo in the city.   Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Home Prices in Toronto hits an all time new record

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Home Prices in Toronto hits an all time new record Cliff Stevenson, Chair of CREA stated that on viewing how many homes were bought and sold in March 2021, one could be forgiven for thinking the market just continues to strengthen, and maybe to some extent it is. Home prices in Toronto climbed to a record as a steep decline in the number of properties that came up for sale added fuel to the competition among buyers, leaving little prospect in the market to cool. Average home price in the Greater Toronto Area has increased rapidly by more than 450 per cent since 1996, raising fears as the population continues to grow and land becomes scarcer. A report states that across the GTA benchmark home prices are up to 17.3 per cent year over year to $1,059,300ss. The driving factor behind the price increase is a lack of homes in the market There was no reassurance for Greater Toronto Area homebuyers last month as the average home price crept up nearly 28 per cent in comparison to last year as a lack of supply continued to hamper the market. The Toronto Regional Real Estate board revealed that the average selling price for a home in the region exceeded $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year. In a press meet, Kevin Crigger stated that the governments at all levels must take coordinated action to increase supply in the immediate term. He also added that until the governments work together to cut red tape, smoothen the approval processes, and encourage mid-density housing, ongoing housing affordability challenges will keep on escalating. In an approximation, the price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000. The Ontario board narrated that it sensed signs in February that the region is making adequate moves toward a more balanced market. On average about 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year. In a press release, Jason Mercer who is the board’s chief market analyst stated that just because the inventory remains exceptionally low, it will take some time for the pace of price growth to slow down. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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A hint on change in Canada’s ‘stress test’ rules before year’s end

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A hint on change in Canada’s ‘stress test’ rules before year’s end Mortgage brokers argue that given the slowdown in the housing market, the Canadian banking regulator should relax its “stress test” qualifying rate for mortgages and make it easier to qualify for a mortgage. This week, the Office of the Superintendent of Financial Institutions issued a statement in which it alluded to the possibility that it might make “adjustments” to its qualifying rate before the end of the year. A review of the qualifying rate is performed by the regulator and then communicated to the general public every December, in advance of the hectic spring housing season that follows the following year. This week, however, the office, which is an independent federal agency that is responsible for supervising hundreds of financial institutions and over a thousand pension plans in Canada, suggested that an announcement may be forthcoming before the end of this year. According to a statement released by the regulatory body on Thursday,“Throughout the rest of the year, OSFI continually monitors the Canadian housing market and mortgage practices, and may make adjustments at any point if necessary for the health of the Canadian lending industry.” Some people working in the real estate industry see this as a sign that the office ought to take action and, in all likelihood, will do so given the rise in interest rates that has occurred this year and the resulting decrease in home sales. The most recent statistics released by the Toronto Regional Real Estate Board indicate that the housing market in the region reached its highest point in the month of February when houses and condos sold for an average of $1.33 million. The average price in the region dropped to $1.25 million as a result of a number of factors, including the Bank of Canada’s decision to raise interest rates in April and the expectation that they will do so again soon. Despite this, prices are still 15% higher than they were at this time last year. “The market is softening, prices are coming down. They (OSFI) did the stress test to cool the market. They don’t need any cooling of the market anymore. It’s already there now,” said mortgage broker Kim Gibbons. In order to avoid having to pay for mortgage insurance, homebuyers are required by the rules to demonstrate that they are able to afford mortgage payments at an interest rate of 5.25 percent or their mortgage contract rate plus two percent, whichever is higher. Homebuyers who have made a minimum down payment of 20 percent are exempt from this requirement. They were implemented in 2016 and 2017 with the goal of reducing overall market activity and preventing buyers from feeling overly pressured by rising interest rates. According to comments made by mortgage brokers in Thursday’s edition of the Star, the current average interest rate for mortgages with fixed terms of five years ranges from 4.19 to 4.25 percent. A borrower would need to demonstrate that they are capable of paying an interest rate that is as high as 6.25 percent in order to qualify for a loan with the requirement of a two percent plus contract. Gibbons believes that this is unreasonable and that it “doesn’t make sense” given the current state of affairs. “As things stand now they have got to do something,” Gibbons added. “Clients are going to alternative sources of lenders, credit unions where you don’t have to do two percent above the contract rate to qualify. People can qualify with credit unions much easier,” she said. “The stress test takes away about 20 percent of your purchasing power. Not always, but that’s kind of the rule.”Mortgage broker True North Mortgage, headquartered in Toronto, and its chief executive officer Dan Eisner are both of the opinions that the Office of the Superintendent of Financial Institutions will step in before the end of the year. According to Eisner if the “If the current housing market continues on a downward trend in home prices, that will give a lot of headroom to OSFI to reduce the stress test rate and requirements for the contract rate plus two percent before the end of the year.” ”I wouldn’t be surprised if they just eliminate the contract rate plus a two percent portion of the stress test; it’s a bit too aggressive. It doesn’t make sense when the fixed rates are in the four percent levels,” Eisner said. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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April witnessed a fall in home sales as mortgage rates increase

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April witnessed a fall in home sales as mortgage rates increase The Canadian Real Estate Association reported on Monday that rising mortgage rates caused a slowdown in the pace of home sales in April compared to the frenetic pace they started the year at. According to the findings of the association, the number of homes sold in May 2022 fell to 54,894 from 73,907 in April 2021, which was the month that the nation set a record for the number of sales in the month. Compared month-over-month, sales in April were down 12.6% when compared with sales in March; however, April still ranked as the third-highest sales figure ever recorded for the month of April, just behind 2021 and 2016. “The demand fever in Canadian housing has broken and, who would have thought, all it took was a nudge in interest rates by the Bank of Canada to change sentiment,” said BMO Capital Markets senior analyst Robert Kavcic, in a note to investors. According to CREA, a significant portion of the slowdown can be attributed to rising fixed mortgage rates, which have been on the rise since 2021 but have had a more significant impact in the most recent months. Over the course of one month, the association noted that the typical discounted five-year fixed rates increased by approximately three to four percent from their previous levels. The rate also has an impact on how well buyers perform on the mortgage stress test. This test used to require buyers with uninsured mortgages — borrowers who had made a down payment of at least 20 percent — to carry a mortgage rate that was either two percentage points above the contract rate or 5.25 percent, whichever was greater. The rate currently has an impact on how well buyers perform on this test. According to CREA, the stress test for fixed borrowers has recently moved from 5.25 percent to the low 6 percent range, which represents another increase of approximately one percent in just one month. “People are nervous. They are thinking, ‘if I take on this mortgage when mortgage rates are going up and the price to (live) is more, what is going to happen?” said Anita Springate-Renaud, a Toronto broker with Engel & Völkers. She observed that many homes were still receiving multiple offers during the previous month, but the typical number of offers was now between two and three rather than twenty. “For buyers, this slowdown could mean more time to consider options in the market,” said Jill Oudil, CREA’s chair, in a news release. It is possible that for sellers, this will necessitate a return to marketing strategies that are more traditional. This shift in sentiment was reflected in the number of newly listed homes, which fell by 2.2 percent to 70,957 last month from 72,557 in March. On a seasonally adjusted basis, this decrease was due to a decrease in the number of newly listed homes. The number of newly listed properties fell to 91,559 in the most recent month, which is a decrease of 10.5% compared to April 2022’s total of 102,294 listings. Despite the fact that the CREA reported a slowdown in sales and a reduction in the number of listings, Canadians spent even more money on homes than they did in 2021. In April, the average price of a home across the nation was just over $746,000. This represents a 7.4 percent increase from the average price of about $695,000 in April of the previous year. The Greater Toronto and Vancouver areas were not included in this calculation, which resulted in a $138,000 decrease in the national average price, according to CREA. On the other hand, when taking into account seasonal factors, the national average home price dropped by 3.8 percent from $771,125 in March to $741,517 in the most recent month. In the most recent month, the home price index benchmark price reached $866,700. This represents a decrease of 0.6% from the previous month, but an increase of 23.76% from one year ago and 63.96% from five years ago. The benchmark price was the least expensive in Saskatchewan, where it amounted to $271,100, and it was the most expensive in the Lower Mainland of British Columbia, where it was greater than $1.3 million. The housing markets in Ontario’s suburbs are the “shakiest” because of the way prices have dropped since their peaks in February, but he said that single-detached homes and townhomes appear to be cooling off the quickest. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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An increase in fixed rates by lenders, brings them closer to 4.5%

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An increase in fixed rates by lenders, brings them closer to 4.5% The previous week saw a rise in bond yields, which led to an increase in the variable and fixed mortgage rates offered by lenders across the country. Rates on 5-year fixed mortgages have been increased by 20 to 25 basis points at major financial institutions such as RBC, TD, and BMO, which all currently offer uninsured rates of 4.39 percent. This change comes after a nearly 10-bps increase in the yield on the Government of Canada’s 5-year bond, which is the benchmark for 5-year fixed rates. On Friday, the yield on a 5-year bond reached a new 11-year high when it closed at 2.88 percent. Bond yields have increased by more than 165 basis points since the beginning of the year. According to the data tracked by Rob McLister, rate analyst and editor of Mortgage Logic, the average uninsured 5-year fixed-rate among national lenders is now 4.37 percent. This represents an increase from the rate of 3.92 percent a month ago. The rate on an insured, fixed-rate mortgage for five years with a down payment of less than twenty percent has increased to 4.14 percent, from 3.78 percent one month ago. This represents an increase from the previous rate. That means that fixed interest rates have increased by approximately 40 basis points in the space of just one month. To put this into perspective, an increase in the rate of 50 basis points results in a roughly $25 higher monthly payment for every $100,000 of debt when amortised over a period of 25 years. New borrowers and those renewing a mortgage are facing significantly higher rates compared to just a few months ago and potentially double for those renewing a mortgage. While this does not affect the majority of borrowers with fixed rates, it does impact new borrowers and those renewing a mortgage. Following the Bank of Canada’s next rate decision meeting on June 1, at which it is anticipated that it will raise interest rates by another 50 basis points (bps), variable interest rates are likely to surge once more in the wake of this development. This may cause the prime rate, which is the rate used to price variable-rate mortgages and lines of credit, to rise to 3.70 percent. Impact of rising rates on mortgage borrowers “As interest rates march higher—we expect the overnight rate to hit 2% by October, a projection that increasingly looks conservative—borrowing costs for Canadians will also rise, leaving the average Canadian household to spend almost $2,000 more in debt payments in 2023,” say economists from RBC Economics. “This will erode spending power, especially for the lowest-earning fifth of households which spend 22% of their after-tax income on debt servicing (including mortgage principal and interest payments),” they add. On the other hand, RBC reports that the pandemic contributed to an increase in the amount of savings made by households in Canada. According to what the RBC economists wrote, the pandemic may have increased debt, but it also left Canadian households with an estimated savings balance of $300 billion. That is an enormous safety net, sufficient to cover approximately one and a half years’ worth of payments on the total Canadian household debt. Impact of rising rates on home prices The most recent housing data showed a significant decrease in home sales during the month of April; however, house prices have remained stable across the majority of the country, with the exception of Ontario. In the Greater Toronto Area, home prices have decreased by approximately 6 percent on average, but they have decreased by as much as 22 percent depending on the type of property and the particular region. Since benchmark prices are frequently a lagging indicator, it is likely that there will be additional price decreases in the months to come. In a recent post on move smartly, real estate analyst John Pasalis, president of Realosophy Realty, wrote that”…tomorrow’s homebuyers are going to have a much harder time paying today’s prices if they were paying 5% on their mortgage compared to the low 2% range just a few months ago, and the high 1% range a year ago.” Pasalis pointed out that some people have argued that this isn’t a concern because many borrowers have been qualifying at a stress test rate of at least 5.25 percent, but he suggests that this is an oversimplification of the situation. The mortgage stress test is currently used to qualify borrowers at a rate that is either the buyer’s actual mortgage rate plus 2 percentage points or the benchmark rate, which is currently 5.25 percentage points.According to what Pasalis has written, as these are dynamic measures that will change as rates do, the stress test will also increase, which will result in a reduction in the amount of debt a buyer can take on. He goes on to say that the contract rate influences how much mortgage debt the borrower is willing to take on. “A buyer who qualifies for a $1M mortgage may be willing to take on that much debt when interest rates are 1.75%, but less so when rates are 4% because under the higher rate their actual mortgage payment would be roughly $1,100 per month higher,” he wrote. As a result, if interest rates continue to trend higher, Pasalis says he “would not be surprised if we see some downward pressure on home prices over the next 9 to 18 months due to homebuyers being unwilling or unable to pay today’s prices at tomorrow’s higher interest rates.” Although, he adds that any price decline would “likely be a temporary one due to long-term fundamental factors that have been contributing to rising home prices in the Toronto area.” Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low

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Positive and negative impact of taxes on preconstruction home resale

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Positive and negative impact of taxes on preconstruction home resale The condo markets in British Columbia and Ontario are booming. Condos are becoming increasingly popular as a first home, a downsize, a way to send children to university, or as investment assets. Many people purchase condos before they are built. Construction takes time, and considering how quickly real estate is appreciating these days, the value of a condo purchased pre-construction often rises dramatically by the time it is ready to move into. For a variety of reasons, buyers may choose or be compelled to sell their pre-construction purchases. Construction is taking too long, their circumstances have changed, or something better becomes available. People frequently sell their pre-construction condos and then find themselves facing additional taxes, interest, and fines. There’s nothing improper with selling an apartment that’s still under construction. The CRA is only interested in whether the rise in value is properly disclosed. The former owner may claim the condo as a primary residence or as a sale of capital property depending on when it was sold on the way to full completion. When selling a pre-construction condo before or shortly after completion, these claims are more difficult to make. This isn’t to say the condo wasn’t your primary dwelling or a valuable investment. It just means you must prepare to demonstrate that it was. The CRA can make assumptions in Canada, and it is your responsibility as a taxpayer to prove them incorrect. The CRA will examine whether the acquisition and sale correspond to a claim for the condo as a primary dwelling, a capital asset, or commercial inventory. Differentiating between different types of sale characterizations can be extremely difficult. These factors include the rationale for the purchase and any supporting evidence, as well as the reason for the sale and supporting evidence. However, these two are only the tip of the iceberg. Pre-construction condo contract sellers are classified as builders by the CRA. This implies you must pay both the capital gains tax (which has a 50% inclusion rate) and the HST (which applies to the deposit you receive when you sell and the profits from the price markup). Homebuyers who are considering (or have already purchased) a new or pre-construction property are frequently confused about the HST rebate. “Who pays for HST on a new home?” and “How is the HST refund calculated?” are often asked questions. And rightfully so. The HST rebate can be substantial, with a difference of up to $30,000 in your bottom line. TheRedPin has broken down the facts around the HST rebate in Ontario for a new condo or house to make it a little easier to comprehend the ins and outs of the rebate programme. The tips in this post are meant to serve as a starting point for first-time homeowners; it’s vital to speak with your lawyer and accountant about the HST rebate. The HST is frequently included in pre-construction project pricing. The builders, in reality, receive the HST rebate on your behalf. If the property is not your primary residence (i.e. an investment property), however, you will be charged a tax of 13% of the acquisition price. Make careful to account for this additional tax if you intend to use your house as an investment. There is also a 15 percent Non-Resident Speculative Tax, as stated in the Ontario Fair Housing Act (NRST). Make sure to budget for this tax if you’re not a Canadian citizen or a non-permanent resident holder. Property taxes are also deductible according to the IRS. Resale homes usually have lower property taxes, depending on the state. While most tax incentives are available to both new and resale properties, a newly built home has a better chance of receiving them. Homebuyers can profit from tax returns before even moving in thanks to construction loans and property taxes, and the greater energy efficiency of new homes is likely to result in credit as well. According to the reports, “an additional 13 percent tax will be imposed on the entire price paid by the second buyer to the original buyer” and “every new assignment sale … will be subject to a tax of up to 26 percent.” It is now abundantly clear that the tax will only be paid on the profit that is being earned by the “flipper,” which refers to the first buyer who is selling the pre-construction contract to the second buyer. This view is based on a thorough investigation of papers that, on the day of the budget, were not readily obvious — at least not to me and a large number of other stakeholders. They are known as Tax Measures: Supplementary Information and a Notice of Ways and Means Motion to alter the Excise Tax Act, and they are the kind of dry documents that are only interesting to people who work in the field of tax law and accounting. According to Toronto real estate and tax lawyer Trevor Kezwer the “Budget Chapter 1.4 Curbing Foreign Investment and Speculation … has a section dealing with Taxing Assignment Sales where it was not clear about how the government intended to apply HST on assignment sales. One had to look into the deep recesses of the budget in the Tax Measures: Supplementary Information (document) to see the actual plans and legislative changes to the Excise Tax Act.” Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Canada’s housing affordability declines the most in 27 years.

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Canada’s housing affordability declines the most in 27 years. A mortgage for the average home in Canada will cost Canadians more than half of their household income for the first time since the mid-1990s. The National Bank of Canada (NBC) noted in its latest Housing Affordability Monitor report that housing affordability in Canada has worsened for the fifth consecutive quarter. In comparison to the previous quarter, the MPPI (mortgage payment as a proportion of income) for a typical home increased by 4.9 percentage points. This is the worst quarter in more than 27 years of declines in the stock market. All ten major markets studied by NBC were found to have decreased in affordability, with the exception of Victoria, Toronto, and Vancouver. “Over the last 12 months, the worsening in affordability was the nastiest in 40 years,” said the report. “For the first time since 1994, it would take more than 50 percent of income for a representative household to service the mortgage on a representative home in Canada’s main urban centres.” “Headwinds will continue to blow against Canada’s real estate market in the months ahead with the Bank of Canada pursuing its monetary policy normalization process through higher policy rates and quantitative tightening,” further said the report. In Q1-2022, rising property prices and rising interest rates were cited as the two key factors that contributed to Canada’s deteriorating housing affordability. Since Q3-2013, NBC’s 5-year benchmark mortgage rate has jumped 46 bps in Q4-2021, the highest one-quarter change since that period. By choosing variable-rate mortgages in recent months, most homebuyers have been able to escape large price rises, but the terms of these mortgages are becoming less attractive. Because of this, the resale market has been affected. The worst losses in affordability have struck Canada’s major cities the hardest. The most severe drops in affordability were seen in the largest and most costly cities in Canada during the first quarter of 2002. For the third quarter in a row, Victoria recorded the highest annual decline in its MPPI, which rose by 19.6 percentage points. As a direct consequence of this, Victoria’s MPPI reached 80%, which represents the highest level for the city since the second quarter of 2008. The MPPI in Victoria experienced an increase of 8.5 percentage points on a quarterly basis. The MPPI increased to 85.7 percent for non-condos and to 44.2 percent for condos, representing respective increases of 9.3 percent and 4.1 percent from the previous quarter. At the moment, the yearly household income required to afford a non-condo in Victoria is $204,078 whereas the annual household income required to afford a condo in Victoria is $123,747. At an annual savings rate of 10%, it would take 382 months (31.8 years) to save up enough money for a downpayment on a house that is not a condo, while it would only take 58 months (4.8 years) to save up enough money for a condo. In the same province, the city of Vancouver had a significant decline in its affordability as a result of the MPPI’s seven-point increase during the first quarter of 2018, an acceleration that hasn’t been seen in the records since the year 1994. The typical monthly mortgage payment in Vancouver now takes up 81.4 percent of the city’s median salary, making it the most expensive city in Canada in which to purchase a property. The Vancouver Multiple Property Index (MPPI) surged by nine percent quarterly to reach 101.5 percent for properties that were not condos. Meanwhile, the MPPI for condos rose by 3.2 percent to reach 43.4 percent. If you want to buy a house that isn’t a condo in the largest city in British Columbia, you’ll need an annual income of at least $285,078; if you want to buy a condo, you’ll need an annual income of at least $142,357. In the event that you intend to save up for a down payment, it will take you approximately 452 months (37.6 years) and 63 months (5.25 years) of savings at a rate of 10% to be able to afford a non-condo or condo residence, respectively. In Toronto, the situation is not significantly better than it was before. The city saw the largest quarterly decline in affordability since 1994 during the first quarter of 2012, as the MPPI increased by 8.1 percentage points to reach its highest level since 1990. The median price per square foot index (MPPI) for non-condo properties rose by 8.9 percent quarterly to 81.5 percent, while the same gauge increased by 4.2 percent for condo properties to an MPPI of 44.2 percent. Homebuyers in Toronto need an annual income of $228,100 to be able to afford the typical house that is not a condo. This figure is significantly more than the required amount of finances, which is only $144,644 for a condo. It would take around 363 months (30.2 years) to save up enough money for a down payment on a house that is not a condo, while it would only take 64 months (5.3 years) to save up enough money for a down payment on a condo in the city. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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