StatsCan’s National Household Survey – Consult with a Vancouver Mortgage Broker

Three out of five homeowners are saddled with mortgages. But in many ways it’s harder being a renter.

Statistics Canada finds that a significantly larger percentage of renters are overextended than homeowners in this country. That’s one of the more noteworthy findings in its National Household Survey (NHS) data released this week.

Other highlights:

• 4 in 5: Households buying a home between 2006 and 2011 had a mortgage in 2011 (79.7%)
• 58.6%: Of owner households had a mortgage overall
• $1,141: Average monthly shelter cost of a homeowner
  • It is $848 for renter households
• $1,585: Average monthly shelter cost of a homeowner with a mortgage
  • The average mortgage payment in 2011 was roughly $1,074 per month
• 26.2%:  Of homeowners with a mortgage spent more than 30% of their gross household income on housing (StatsCan’s threshold of “affordability”)
  • That’s 1.4 million households
  • They pay $1,776 per month on average, $688 more than what StatsCan’s “30% of income” rule of thumb suggests
  • Says TD: “It is interesting that shelter costs have risen for homeowners even though mortgage rates were at record low levels.”
  • This number was amply hyped by the media but lenders, default insurers and regulators have targeted, and will increasingly target, homebuyers who overextend themselves. Just as telling (if you believe these numbers) is that almost three-quarters of Canadian mortgagors have budgeted prudently.
  • But there’s a chance this 26.2% may be somewhat low. StatsCan’s NHS was voluntary, so low-income homeowners might not have responded in proportionate numbers (due to well-known response biases). That may have skewed this figure lower.
• 40.1%: Of renters spent more than 30% of their income on housing
  • That’s 1.6 million households
  • They pay $928 per month on average
  • With tougher mortgage regulations prompting increased rental demand, this 40.1% number could grow (and it may be biased lower already, for the same reasons as above).
• 69%: Of households own homes
  • That’s 9.2 million households out of 13.3 million
  • This number has changed little since 2006

Chart source: TD Economics, Statistics Canada

• $76,600: Median family income (in 2010)
  • Here’s where the money is: Income Map
  • Median individual income for full-time workers was $47,868 in 2010

Given the questions about StatsCan’s new survey methods, we have purposely avoided comparing most of this data with prior years.

Robert McLister is the editor of CanadianMortgageTrends.com and a mortgage planner at VERICO intelliMortgage, a mortgage brokerage. You can also follow him on twitter at @CdnMortgageNews.