HomeMortgageYou now need to make an extra $18,000 to pass the mortgage...

You now need to make an extra $18,000 to pass the mortgage stress test

A home for sale in Toronto’s Annex neighbourhood is photographed on July 18.Fred Lum/The Globe and Mail

The housing market appears to have cooled in recent weeks, but that doesn’t mean it’s now more affordable to enter the market. In fact, owing to rising interest rates, the opposite is true.

Within the past four months, the yearly income needed to buy the average Canadian home on a fixed mortgage with 20 per cent down has climbed by an average of $18,000, according to new data from Ratehub, a loan-comparison website. It determined these numbers by contrasting data from the Canadian Real Estate Association on all housing types from March with June, using the average mortgage rates of Canada’s five largest banks.

In Vancouver, would-be homebuyers must now take home a minimum of $232,000 a year to afford a home, an increase of almost $32,000 since March. That’s despite the…

Read more at www.theglobeandmail.com

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