The Latest in Mortgage News: BoC's Affordability Index reaches worst level since 1991 - Mortgage Rates & Mortgage Broker News in Canada

Abstract

The BoC released the first-quarter results of its Housing Affordability Index (HAI) this past week, which rose sharply compared to the previous quarter. The data shows a household must now devote 42.8% of its disposable income to housing-related expenses. That's up from 39.7% in Q4 2021 and 34.6% a year earlier. The release follows similar findings from the National Bank of Canada’s first- quarter. That measure saw its fifth consecutive deterioration. The measure, which strictly tracks mortgage carrying costs, saw its 5th consecutive deterioration in a year.