Canadians are overspending on housing in alarming numbers, according to a recent RateSupermarket.ca survey. Among those who rent, 44 percent of Canadians are spending more than a third of their income on housing. Not only that, but 20 percent of homeowners are spending more than a third of their income on the roof over their head.
One third of your household income is the suggested housing budget given by the Canadian Mortgage and Housing Corporation (CMHC) – any more than that is a stretch to the family budget. The RateSupermarket.ca survey also found that 15 percent of Canadian renters are spending more than half their income on rent.
These numbers highlight the growing divide among Canadians who own versus those who don’t.
The problem is worst in Toronto, where 34 percent of all respondents are overspending. Our survey broke all respondents into regions, so these figures represent homeowners and renters combined.
Percentage of Canadians spending more than a third of their income on housing by major city:
Toronto: 34 percent
Montreal: 33 percent
Vancouver: 30 percent
Edmonton: 29 percent
Calgary: 27 percent
Ottawa: 22 percent
Two thirds of the people who responded said they intend to purchase a new home in the near future, and among those, it was again renters who feel they’ll need to stretch their budget to afford a suitable home…