A typical home required nearly two-thirds of a household's income just to service the mortgage payments in Q2 2022. The quarter saw the fastest erosion of affordability in 40 years, but the bank doesn't see it lasting long. Rising rates and falling sales are forecast to trigger double-digit price declines in the not-so-distant future. 

Canadian Housing Affordability Eroded The Fastest In 41 Years

Canadian housing affordability eroded for the sixth consecutive quarter. Households needed to dedicate 63.9% of their income for a typical urban home in Q2 2022. The 10.4 point increase from the previous quarter was the largest seen since 1982. Yes, it's been over 40 years since anything like this has happened.