The rising cost of housing in Canada is a hot topic. Real Estate reports tell us that renters are often paying a quite alot more than homeowners to have a plae to hand their coats.
According to research I have recently read, 44% of renters said they are paying more than a third of their income for housing while this is true for just 20% of homeowners across Canada.
For 15% of renters, the cost of putting a roof over their heads takes more than half their monthly income.
The Canadian Mortgage and Housing Corporation (CMHC) recommend that housing costs should be less than a third of household income; These figures above are currently higher than their recommendation.
With budgets so tight, and if renting is the best option for a household, Canadians could save hundreds of dollars by shopping around for better deals on their other household expenses, helping to offset the impact of rent on a budget.
Homebuying is on the agenda for many respondents with two thirds saying they intend to buy in the near future. Of those, 40% of renters report they’ll need to use more than one third of their income to afford a suitable home, while 27% of homeowners still expect to pay more than what they are already spending towards that purchase.
There are always options available to people if they want to get out of the rental trap. We have several trusted Mortgage Brokers that we use to guide people in the right direction to do what is best for them and their families!