RBC recently published their quarterly report on housing affordability in Canada. While the cross-country report suggested there was a modest improvement in affordability in the fourth quarter of 2013, RBC says the overall housing affordability picture has not changed significantly since 2010 and would likely erode in 2014.
Even though there were no dramatic changes in the affordability picture, we thought we would zero in on the variances in qualifying income across property types in major Canadian markets through the last 10 quarterly RBC reports.
RBC defines qualifying income as the minimum annual income used by lenders to measure the ability of a borrower to make mortgage payments. Typically, that amounts to no more than 32 per cent of a borrower’s gross annual income.
Have a look at the interactive charts to see how the qualifying income for bungalows, two-storey houses and condos has changed in the last couple of years: