Home ownership in Canada has deteriorated the most in 27 years in the first quarter of 2022, marking a fifth consecutive quarterly deterioration, according to a new National Bank study released on Wednesday.
The decline in housing affordability is partly explained by the 4.9% increase in the mortgage payment on a representative home as a percentage of income, following a 2.2% increase in the fourth quarter of 2021.
In addition to soaring house prices, the study points to a 46 basis point rise in the five-year fixed mortgage interest rate in the first quarter, the largest quarterly change since 2013.
House prices rose 5.1% in the first three months of the year compared to the fourth quarter of 2021, while the median household income changed only 0.8%, according to the report. the National Bank.
Thus, a couple of new buyers should devote more than half of their income to repaying their mortgage, in the case of the purchase of a residence representative of their local market.
For example, in the Montreal metropolitan area, for the purchase of a residence of more than $550,000, a couple should save 10% of their income for 51 months for the minimum down payment and 32 months in the case of a condo.
