Canadian housing affordability is just about the worst ever.
That's especially problematic for first-time buyers who:
- can barely scrape together the minimum 5% to 7.5% down payment
- have strong credit and solid employment
- have debt ratios above the 39% #GDS#/ 44% #TDS# insurer limits
- can't pass the stress test because of it
- are forced to rent longer as a result.
For folks in this bucket, there's a good chance they'll retire poorer.
That is, they'll lose the opportunity to accumulate tax-free equity appreciation. With soaring rents near all-time highs, it's hard to make that up with rental savings—particularly if future appreciation rates stay anywhere near the historical 5%+ annualized level.
This first-time buyer plight was the impetus for Marathon Mortgage's latest product, a deep discount 6-month mortgage. It launches on Monday, other than in Quebec and the Territories.