According to new data from ratehub, you’ll need to earn a cool $225K+ to purchase a home in Toronto (based on a 20% downpayment). And that's up 7% just since this past March. TOre realestatenews
The good news for first-time homebuyers looking to get into the market in spots like Toronto, Vancouver, Winnipeg, Ottawa, and Hamilton is that prices have softened in recent months following a dramatic red-hot two-year run inspired by the pandemic. With that said, perpetually
and stress test rates in response to soaring inflation still make homeownership unattainable for many young Canadians.As mortgage rates have increased, so has the stress test rate. Home prices have started trending downwards in some major cities in recent months. However, the annual income required to purchase a home has increased significantly across all cities — Victoria saw the biggest increase, says RateHub.
“In every city, homebuyers require a lot more income to purchase the average home due to higher stress test rates caused by increasing mortgage rates. This is the case even for cities that saw home prices decline,” says James Laird, Co-CEO of and President of CanWise mortgage lender. “Generally, for every 1% that the stress test increases, a household qualifies for about 10% less mortgage.”more downward declines for houses to become grossly more attainable for first-time homebuyers — especially given the fact that risingmake it more difficult to save. “Home prices will need to drop significantly in order to neutralize the effects that higher mortgage rates have on the stress test,” says Laird.
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