Canadian homebuyers today face greater financial challenges than those in the 1980s despite lower interest rates. In 1981, rates peaked near 22%, but homes cost three to four times household income, with smaller mortgages and shorter saving periods. Now, average home prices have risen 57% since 2015, far outpacing wage growth, with mortgage payments consuming over 50% of income nationally and over 70% in Toronto. First-time buyers are older, saving longer, and stretched by 30-year amortizations, reflecting a structural affordability crisis.
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