If your mortgage payments increase from $800/month to $1100/month how will you cope?
With mortgage interest rates on the rise, home ownership is about to become unaffordable for about four out of five Canadian families. In many cases, families are living in homes they cannot afford already.
Here’s the rule of thumb à If your housing costs exceed 30% of your pre-tax income, you can’t afford where you’re living (according to the Conference Board of Canada).
In the coming months, there will be a number of factors that will place families at risk. With the interests rates having been so low and the ability to put down 5%, many families are carrying high debt loads, which will increase as mortgages come up for renewal. At the same time wages will remain pretty much the same.
Not good.
Storm clouds brewing.
Storm clouds brewing.
