Still, not every market improved. \u201cOf the 13 cities studied, only one saw home affordability worsen,\u201d Graham said. \u201cFredericton saw $330 in additional income required to purchase the average home. This is due to the average home price increase of $2,700. The Fredericton borrower in this scenario would pay $9 dollars more on their monthly mortgage payment, or $108 per a year, in November compared to if they bought in October.\u201d<\/p>\n
Lower rates helped \u2013 but headwinds remained<\/p>\n
Affordability in November was helped by the Bank of Canada\u2019s 25\u2011basis\u2011point cut on October 29 and slightly lower bond yields, which pulled the average five\u2011year fixed rate used in the study down to 4.44% from 4.47% and the stress test to 6.44% from 6.47%.<\/p>\n
At the same time, shoppers who secured deep discounts away from the big banks gained a further edge.<\/p>\n
\u201cThe best 5-year fixed rate on Ratehub.ca has increased recently to 3.94%. However, it still continues to be lower than the average of the Big Five, which is what we use in these calculations,\u201d Graham said.<\/p>\n
\u201cSecuring a lower rate, such as 3.94%, will have a big impact on how much you can qualify for. Looking at the average national home price of $682,912 that could mean a savings of $173 per month, or $2,076 per year.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Still, not every market improved. \u201cOf the 13 cities studied, only one saw home affordability worsen,\u201d Graham said.…\n","protected":false},"author":2,"featured_media":354807,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,44588,99,118670,164,39045],"class_list":["post-354806","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-bank-of-canada","tag-business","tag-canadian-housing-market","tag-economy","tag-housing-affordability"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/354806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=354806"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/354806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/354807"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=354806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=354806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=354806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}