Quote:
Originally Posted by sclitheroe
How could this be possible? I thought the government had regulations stating banks couldn't issue mortgages with monthly payments of more than something like 32% of your monthly gross income. Or is that only for mortgages that require CMHC insurance?
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It's not possible
The stats are based on the average detached home price vs average incomes.
In Vancouver, detached home prices are extremely high so when compared to average income they are somewhere around 9-10X.
What the stat doesn't show it that the people making that average income aren't the ones buying those detached homes. They're buying condos/townhouses or properties in Richmond, Surrey, Coquitlam etc.
The people who are buying those homes have large equity from past properties, are wealthy or wealthy immigrants.
It's not people with household incomes of $70K and no previous equity buying the $1M homes.