[discretion22]

> monthly mortgage payment of $3,611 per month ($43,332 per year). Compared to the median pre-tax household income of $89,709 in Canada, this means that the mortgage payment represents 48.3% of income.

As the payroll taxes deduct (roughly) 30% from the $90K salary, leaving around $60K, that actually turns into about 70% of actual take-home salary. That makes it seriously difficult for anyone to then pay the roughly $5K in property taxes and utilities (in Toronto) plus electric and gas of approximately $250/month (if they want light and heat in the house). Things like food then become luxury, occasional, items.

I'm surprised the market correction has not been much more than it has. Something has to give and I don't see Canadian companies giving huge salary increases anytime soon (they massively underpay compared with the US).

[getToTheChopin]

Yep great points. The average citizen simply can't buy the average home in most cities.