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- calendar_today October 22, 2026
Affordability Rises in Canadian Housing Markets
Home affordability in Canada improved in 12 out of 13 major cities between August and September 2026, according to Ratehub’s latest affordability report. The online financial comparison platform analyzed the minimum annual income required to buy an average home in each city, factoring in a 10% down payment, a 25-year amortization, $4,000 in annual property taxes, and a $150 monthly heating bill.
How Annual Income Needed to Afford a Home Changed
The report calculated the income Canadians must earn to qualify for a mortgage on an average-priced home, considering the mortgage stress test and the impact of mortgage rates. In most major Canadian cities, the income required to buy an average home declined in September compared to August, reflecting shifting housing market trends.
Cities with Improved Home Affordability
- Halifax: Saw the greatest improvement with the required annual income dropping by $4,160 to $119,040.
- Ottawa: Required income fell by $2,630, coming down to $134,770.
- Victoria: Decreased by $1,840 to $183,510.
Other cities, such as Hamilton ($153,050), Montreal ($126,050), and Calgary ($124,320), also recorded reductions in the income required to afford average-priced homes, according to the affordability report.
Most and Least Affordable Canadian Cities
- Vancouver remained the least affordable, requiring an income of $221,750 to buy an average home priced at $1,075,900—a figure only $980 lower than the previous month.
- Toronto followed, with prospective buyers needing an annual income of $191,320 to purchase an average home at $917,600.
- Regina was the most affordable among the major cities, asking for an $81,000 annual income to acquire an average home worth $343,900.
- Fredericton was the second most affordable, despite being the only city where affordability worsened slightly in September. The required income rose marginally from $84,840 to $84,940, mostly due to a $200 increase in the average home price—adding just $3 to the average monthly payment.
- Other relatively affordable cities included Winnipeg ($90,270), Edmonton ($95,000), and St. John’s ($95,980).
Factors Influencing Home Affordability
The improvement in home affordability was largely driven by falling home prices across most Canadian housing markets. However, the report notes that these modest changes may not significantly impact the majority of potential home buyers in the near term. That’s because both housing prices and mortgage rates tend to influence the cost of purchasing a home; in September, while prices declined in most markets, fixed mortgage rates inched higher.
Looking Ahead: Trends in Real Estate Canada
Rising gas prices and broader economic uncertainty could continue to exert downward pressure on home prices, according to Ratehub. However, for mortgage costs to drop substantially for buyers, both home prices and mortgage rates need to decrease. The report suggests that unless there are further significant changes in the housing market, only small declines in required incomes and monthly mortgage payments can be expected for most buyers through the rest of the year.
Summary of the Latest Affordability Report
The findings highlight important trends in real estate Canada and offer perspective on home affordability in major Canadian cities. Buyers considering entering the market this fall are encouraged to review the latest data and watch for ongoing shifts in pricing and mortgage conditions.
Source: nationalpost.com.
