“Having a clear understanding of one’s financial situation, including down payment and pre-approval for a mortgage, is crucial before embarking on the home-buying process,” Paige wrote in the video’s caption with a crying-laughing emoji.
“A good real estate agent can indeed help buyers by guiding them through the pre-qualification process, ensuring that they focus on properties within their budget, and saving everyone’s time and effort in the long run. It’s a valuable step to make the home-buying journey smoother and more efficient.”
The video received comments criticizing the post, with many of the commenters emphasizing that Canadians are struggling with housing costs after the Bank of Canada announced a series of mortgage interest rate hikes in the past two years.
Homebuyers struggling with elevated rates
A recent Consumer Price Index report from Statistics Canada revealed mortgage interest costs have risen by 29.8% year over year, while rents have risen by 7.4%.
Another report from Ratehub.ca revealed a significant increase in the minimum household income required to secure a mortgage for the average home in many Canadian cities. For example, in Toronto, where the video creators are based, a homebuyer has to make $230,450 per year to afford a mortgage on an average home. Per Canada Mortgage and Housing Corporation data, the highest average family income recorded is in Toronto (North) at $196,463 and the average household income after taxes is $139,053.