Toronto Housing Affordability
In Toronto, a single-family house ownership costs take up 76.1% of a typical household’s pre-tax income. RBC reported that in the Toronto area, home resales are setting yet new record highs and prices continuing to rise at accelerating rates.
|Toronto Area Housing Affordability|
|Source: RBC. Q4 2016|
*The RBC Housing Affordability Measures show the proportion of median pre-tax household income that would be required to service the cost of mortgage payments (principal and interest), property taxes, and utilities based on the median market price for single-family detached homes and condo apartments. The higher the measure, the more difficult it is to afford a home.
The affordability measures are based on a 25% down payment, a 25-year mortgage loan at a five-year fixed rate, and are estimated on a quarterly basis for 14 major urban markets in Canada and a national composite.