Mortgage on Kelowna starter home double what most people can afford
The average mortgage payment for a starter home in Kelowna is double what two-thirds of households can afford.
A survey from Everyrate.ca found that 67% of Canadian households can’t "comfortably afford" housing costs above $1,749 per month, which is half of a monthly mortgage payment for a condo in Kelowna.
The Leger survey found that the average mortgage payment in Kelowna for a condo is $3,501, with the starter home costing $658,000.
More than one-third, 38%, of Canadians said the maximum they could afford for housing each month was $1,000 and a further 67% said they "couldn't handle" anything over $1,749.
Even for households making more than $100,000 things weren't great.
Forty-two per cent of those making six-figure incomes said they couldn’t comfortably pay more than $1,749.
"What stood out to me in this survey was that even households earning over $100,000 a year are feeling the pinch, with nearly half unable to comfortably afford housing above $1,749 per month," EveryRate.ca cofounder Andy Hill said in a media release. "That shows how pervasive this affordability crisis has become, it’s not just affecting low-income Canadians."
More than half of those who took the survey had household incomes of more than $60,000, 70% had a college diploma or university degree, and more than half of the respondents, 63%, were already homeowners.
These factors indicate that the affordability crisis isn't confined to lower-income households, but well-educated, middle to high income Canadians, and many homeowners.
READ MORE: Survey finds huge majority of British Columbians say homeownership now a luxury
"This high rate of homeownership highlights that even those who have already entered the housing market are experiencing affordability issues, whether through mortgage payments that exceed their comfort levels or concerns about maintaining their housing costs," the release said.
British Columbia has the largest disconnect between housing costs and what households could afford with housing payments exceeding comfort levels by 63%. Ontario came in second place at 54%.
Across the province the average mortgage payment is $2,847 and the average rent $2,549, while the comfortable payment is $1,787.
It gets a little better in Alberta with "comfortable payments" at $1,557 and mortgages costing $2,057 a month and rent at $1,786.
However, every province surveyed still found that "comfortable payments" were higher than average mortgage costs and rents.
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