Danny B

I read this article this evening and feel rather fortunate to be living in a city where homes for sale align with local earnings. Thought it might be interesting.

scrubbedexpat091

No real surprises, in that top 20 list there is not one we could buy a home in. lol

R I C H

The top 20 should be taken with a pinch of salt as a definitive list - it's missing major cities like Kelowna/West Kelowna, Chilliwack and towns like Vernon.

dbd33

I don't understand the numbers. If someone has an income of $163,193 that person can borrow about $500,000. If a house costs $1,196,350 then the house is "affordable" if that person happens to have $700,000 in cash. One might as well say the house is affordable by someone with an income of $63,193 and suppose they found another hundred grand down the back of the sofa.

beckiwoo

scrubbedexpat091

They are using 20% down according to the fine print, but at the high cost of housing, I wonder how many people end up with 20% down.

Many of these city's also have rent affordability issues as well.

Even Chilliwack is getting up there price wise.

Both also have rent affordability and stock issues.

Siouxie

https://www.theloop.ca/this-is-the-m...across-canada/
Meanwhile, elsewhere in Canada...
https://www.zoocasa.com/blog/these-a...ts-in-ontario/

Yikes! Sorry, that was way too big http://www.rentseeker.ca/blog/index....ss-canada/1829
Hamilton ha got far more expensive since the Toronto crowd discovered it

scrubbedexpat091

That first link, so FREDERICTON and CHARLOTTETOWN are within our income range, but our income would drop in either place most likely.

dbd33

Suppose one has $250,000 in cash. That's 20% down on 1,196,350 so there's just 957,080 left to pay. To get a mortgage for 957,080 you need an income of $320,000 (you have to meet other criteria too but that's one limiting factor). $163,193 is only halfway there and that's without considering the utter stupidity of taking the biggest loan the bank will give you.

I don't think the chart is at all realistic. I should, of course, have noticed at the outset that it's published by an estate agent and not tried to make sense of it.

BristolUK

Fredericton - $30,000
$97,500 and dozens in between.

scrubbedexpat091

Useful info. I am not good enough with math, but figured someone would be able to figure it out.

ann m

I've mentioned this before, but those property shows on TV flummox me. Young couple, early 30's, two young kids and a baby on the way (so factor in drops in income in recent years with maternity leaves), and their budget is $1.6m. How??

Not every couple across a whole series could have made a killing on the market, or had a wealthy parent leave them $800k, so what size are the mortgages these people are taking on?! Scares the bejeezus out of me.

scrubbedexpat091

According to the mortgage calculator affordability on that site, if making 15/hr working full-time with 10,000 could get a mortgage of 122,000.

Not sure how accurate the calculators are.

Tangram

What happened to the old 3x salary multiplier ?

scrubbedexpat091

Houses got to expensive in parts of Canada and incomes didn't follow the trend.