Housing rental may have increased by 2 percent in 2013, but costs of home ownership have risen higher at 9.8 percent . This is one reason why renting is fast becoming an alternative to owning one’s home among Canadians, changing decades-old cultural bias.
In a report by the Financial Post, Benjamin Tal, deputy chief economist of the CIBC World Markets Inc., remarked that this growing preference could indicate a trend. He also attributes a possible reason the current status of Canada as the most expensive global place for a home purchase, as stated in another report by the International Monetary Fund (IMF). The IMF report notes that the housing to rate comparison in Canada is 85 percent above the norm.
According to the Royal Bank of Canada, the increase in
mortgage rates further weakened affordability. A bungalow owner devotes 43.3 percent of his pre-tax household monthly income to utilities, taxes, and mortgage payments.
The Canadian Real Estate Association notes that during the third quarter, the average home sold for $391,085, nearly a 10 percent increase from home rates in 2012. During the third quarter of 2012, a two-bedroom apartment rented for $908 or a mere 2 percent increase from 2012 rates.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate