Posthaste: Rising mortgage rates driving Ontario homeowners to move in search of affordability

All across Canada, the average income needed to buy a home has risen by an average of $18,000 from March to June, Ratehub said.

For example, in Toronto, you now need to make $15,750 more to buy a house priced at the average $1.2 million. Ottawa isn’t much better, with $15,350 more in annual income needed to purchase a $695,600 home. Hamilton, Ont., homebuyers need an extra $8,660 to qualify for a mortgage on a $934,700 house.Article content“Generally, for every one per cent that the stress test increases, a household qualifies for about 10 per cent less mortgage,” James Laird, co-chief executive of Ratehub.

“Home prices will need to drop significantly in order to neutralize the effects that higher mortgage rates have on the stress test. Unless this happens, home affordability will continue to be impacted significantly by the current rising rate environment,” he said.Article content

Guess who’s buying those homes? Outside investors…..

In 1981 the BOC rate was 21.46% People weren't fleeing. Avg home was $90k which is why the rate hike. It's $15k higher than it was 2 years before. $90k in 81 is $278k today. That would be a $4800 mortgage. Avg price is $1.3M... It isn't the rate people are fleeing.

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