BMO's latest report on Canadian real estate affordability paints a bleak picture for young adults, with affordability worse than it has been since 1988. The report reveals that in Greater Toronto and Vancouver, households need to spend 79% and 78% respectively of their median income on a mortgage. This is not including additional costs such as taxes, heating and condo fees. Interest rates are at their highest since 2001, but since then home prices have grown 3x faster than incomes, making it even harder to become a homeowner. The stress test further complicates the issue, making it even harder to qualify for a mortgage.
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