Homes in Canada 'slightly easier to afford' this summer, despite rate hikes: Ratehub

• By Mike Heddle
• Posted Monday, Sep 26, 2022 11:06 am

Homes in Canada 'slightly easier to afford' this summer, despite rate hikes: Ratehub

Housing affordability in Canada modestly improved over the summer months as the jump in borrowing rates was partially offset by a significant decline in home prices, according to rate comparison site Ratehub.ca.

The analysis took into account mortgage rates, the stress test and average home prices, and showed the amount of annual income needed to buy a house in 10 major Canadian cities fell across the board from June to August.

"Homes in every city we looked at are slightly easier to afford than they were two months ago. This is because rates have remained unchanged, while home prices have softened," James Laird, co-chief executive officer of Ratehub.ca and president of mortgage lender CanWise, said in a release on Friday.

Toronto saw the biggest improvement, where yearly income required to afford a home fell $12,550 to $213,950 in August over the two-month period. Ratehub says data from the Canadian Real Estate Association (CREA) showed the average home price in the city dropped $80,300 to $1,124,600 over that timespan.

Hamilton, Ont. came in second, with buyers needing an annual income of $167,500 to buy a property in August, $11,560 less compared...[READ MORE]