A homebuyer would need less income now to qualify for an average-priced home in a major Canadian city when compared to how much it was costing in the summer, according to new data from mortgage brokerage Ratehub.ca.
The brokerage analyzed 10 cities across Canada using October 2022 real estate data and compared data from June and August.
Homes across the country “are becoming more affordable,” said Ratehub.ca marketing strategist Jon Jilani in a report released on Nov. 16, 2022.
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“With the Bank of Canada signalling that the worst of the rate hikes may be behind us”, the report noted, there was a reason to be “cautiously optimistic” about home affordability in Canada.
Ratehub.ca looks at the minimum annual income required to buy an average-priced home in Canada’s 10 major cities. The analysis keeps into account the changes in mortgage rates, stress test rates, and real estate prices.