Canada's Housing Bubble

Despite the historically low mortgage rates, housing affordability in Vancouver is close to being the worst on record (the actual record was set less than two years ago). Once bank and mortgage rates gravitate towards their long-term average, housing affordability in Vancouver will approach 100 percent. In other words, an income-earning family in Vancouver would have to spend every penny they earn on housing costs. This is in addition to learning tax evasion methods, as this 100 percent would be of their pre-tax income. While not as dire as it is in Vancouver, housing affordability of Toronto, Calgary and Montreal will deteriorate and likely exceed levels seen during the last real-estate bubble. If you are planning to buy a house, a townhouse or a condo in one of these cities now, please consider the fact that you are purchasing the least affordable and the priciest (in real-terms) property in modern (or recorded) history.