Quote:
Originally Posted by lowside67
That's not really true. The qualifying rules for a mortgage haven't changed much over the past years and interest rates have historically been higher.
Today, a $67k income qualifies you to borrow about $300k given interest rates just over 2%; the average Vancouver detached home sells for $1.8M.
10 years ago, interest rates were about 6% and a $67k income qualified you for a $200k mortgage while the average detached home sold for $900K.
Housing prices have gone absolutely insane, but my point is simply that if your household only earns $67k, you have not been in any contention to buy a house in Vancouver for many decades, let alone "higher end homes". There has been a disconnect between earnings and house pricing for many years in prime areas of Vancouver, it's just that this recent explosion has pushed it out to all the suburbs as well.
Mark
Sources:
Historical Prime Mortgage Rate
http://www.news1130.com/wp-content/b...2/02/rebgv.jpg |
Sorry, should have been more specific. Was thinking more along the lines of pre-Expo86. Parent's bought their house at just under 100k on an inflation equivalent of 67000/year income. Hell, my mom bought a water front house in White Rock around that time for 20k, and on a substitute teachers salary
