Experts in Canada are advocating the scarping of the 30% rule as many believe the benchmark no longer applies.

 

Experts in Canada are advocating the scarping of the 30% rule as many believe the benchmark no longer applies.  The 30% rule indicates the maximum percentage of income one can spend on housing costs.  The Canadian Mortgage and Housing Corporation introduced the 30% rule in 1986 and believes it is still a useful benchmark for measuring housing affordability in the country.  As per the rule, in Vancouver, a single person should earn $9,000 per month or $108,000 per year to afford an average one-bedroom apartment at a rent of $2,787 per month.  Instead, experts recommend that people consider the overall budget and asses their needs, as everyone's circumstances are unique.