Sep 28, 2018
By Michael Kramer
Some unsettling news from an RBC report – which says the cost of owning a home in Canada has reached its worst level in 28 years – and is bound to deteriorate even further.
The report says the share of income a household would need to cover ownership costs – hit 53.9 per cent – in the second quarter of 2018.
Bank economists say affordability is being dragged down by the Toronto, Vancouver and Victoria markets – where affordability has hit ranges from just over 88 per cent to 65 per cent.
The report’s authors say rising interest and mortgage rates share much of the blame – but they expect increases in household income will soften the blow for buyers.