In a report released by the Economics Research team at RBC, the ratio of pre-tax household income it takes to own a home declined in the third quarter of 2010. The report cited lower home prices and mortgage rates as reasons for the upswing.
RBC quoted recent stats which state that on a national average it took 40.4% of household income to own a bungalow between July and September. That figure is 2.4 % lower than it was in Q2.
There is also thought that this affordability could get even better, and be more accessible for more Canadians. The anticipation of additional cuts in the posted five-year fixed rate are already in place in the early part of the fourth quarter, and previous home price increases are rolling back in certain markets.
There was improvement nationally in terms of home ownership affordability in the Q3, especially in British Columbia, where elevated property values enhanced the overall effect of falling interest rates in calculating monthly mortgage charges.