RBC says home affordability to deteriorate with rising mortgage costs
OTTAWA - The Royal Bank of Canada (TSX:RY) says the ability of Canadians to keep up with housing costs has actually been improving of late, but warns against complacency.
The Royal Bank's latest housing affordability measure shows home servicing costs relative to incomes actually fell in the last three months of 2013, bucking the deteriorating affordability trend of the previous two quarters.
But the relief will be temporary, the bank says in a new report, because mortgage rates are due to start rising this year.
In the fourth quarter, the bank estimates maintaining a detached bungalow at current market prices across Canada would have taken up 43.1 per cent of average household income, while the cost of a two-storey home would have claimed 48.7 per cent.
Both measures are 0.2 points lower than in the third quarter.
The RBC index represents the percentage of pre-tax household income that is needed to service the cost of owning a home at current market prices, including payments for a mortgage, utilities and property taxes.
Read more Business News
- Targeted shooting in VancouverBC - 6:23 am
- Predator Ridge Fire Hall coming soonVernon / N. Okanagan - 5:00 am
- Vernon Farmer's Market wins top spotVernon / N. Okanagan - 4:50 am
- Lost snowmobiler was full of lifeVernon / N. Okanagan
|QHR Technologies Inc||1.16||-0.03|
|Anavex Life Sciences||0.56||+0.02|
|Copper Mountain Mining||2.15||+0.01|
|Sunrise Resources Ltd||0.035||+0.005|
|Mission Ready Services||0.275||-0.02|
How will you pay for this today? Maybe it’s time to change the way you answer this common checkout question.With more payment options than ever, consumers can find easy ways to save money, simpl...
In the razzle dazzle of Hollywood it is hard to find anyone who stands out from the crowd. The fraternity of Actors, Producers, Directors and various other technical guru’s seem to live in a wo...
This past Sunday I drove from Kelowna to Powell River. For those of you who’ve never had to, particularly in winter, it means rising in the wee hours; managing a treacherous journey on the Coqui...