MNI BRIEF: Vancouver Typical Home Payment Tops Monthly Income
Vancouver home buyers can now expect to shell out more than their monthly income to fund a mortgage payment, making it the most expensive city in Canada where affordability is now the worst since 1981, underlining why the central bank says the economy is overheated and higher interest rates are needed to restore balance.
National Bank of Canada said Wednesday that mortgage service costs across the country reached 67.3% of income, and in Vancouver the figure is 102.1%. The Bank of Canada has raised rates 350bps this year and will pause early next year as consumer spending is pinched, academic and former BOC adviser Thorsten Koeppl told MNI. (See: MNI INTERVIEW: BOC Pausing Soon To Assess Lags- Ex-Adviser)