[bizaro86]

Originally Posted by ranchlandsselling

Additionally Australia has a completely different mortgage system. They don't have a CMHC or similar entity to insure mortgages (from what I understand) and as such experience much higher interest rates then we do in Canada.

http://www.theaustralian.com.au/busi...-1226344969834

National Australia Bank's standard variable rate will fall from 7.31 per cent to 6.99 per cent, effective from Friday.

http://www.apimagazine.com.au/api-online/rate-update

I see a 5-year fixed as low as 6.20% and as high as 7.19%.

That would make affodability even worse when you measured it by payments. If houses are more expensive per dollar of income, and interest rates are higher, it stands to reason mortgage payments are much, much higher per every dollar of income.