According to the latest monthly affordability report from Ratehub.ca (Ratehub Inc. owns both Ratehub.ca and MoneySense), it's become easier to qualify for an average-priced home loan in all markets studied across Canada— for the first time since January. To show how lending conditions are evolving in real time, the statistics show the minimum annual income needed to buy a median-priced home in some of Canada's largest cities based on monthly real estate data. The analysis is based on the average five-year mortgage rate, and the result of the mortgage stress test, in addition to the average house prices as reported by the Canadian Real Estate Association, for the month of July.
This latest program (which is updated monthly, so bookmark this page) is affected by the recent rate cuts from the BoC that are coming into consumer lending rates. Two quarter-point cuts in June and July have pushed Canada's borrowing costs from 5% to 4.5%. In addition to Canada's prime rate falling to 6.7% – which in turn lowered mortgage rates – lower bond yields also lowered mortgage rates, with the new five-year fixed rate falling to 5.29%.
Here's how it played out in housing markets across Canada.
Housing affordability in all major Canadian cities
Check out the chart below to see how affordability changed between June and July in Canada's major housing markets, based on the income required to qualify for a mortgage. The stress test rates used are 7.47% in June and 7.29% in July. Used home prices were 5.47% in June and 5.29% in July.
July 2024: How much do you need to buy a home in Canada?
| The city | Average home price in June | Average home value in July | Change in home value | Income is due in June | Income is due in July | Change in income |
| In Toronto | $1,110,600 | $1,097,300 | $13,300 | $214,360 | $208,950 | $5,410 |
| in Vancouver | $1,207,100 | $1,197,700 | $9,400 | $231,700 | $226,680 | $5,020 |
| Hamilton | $849,900 | $843,500 | $6,400 | $167,550 | $164,040 | $3,510 |
| Victoria | $872,800 | $872,600 | $200 | $171,650 | $169,200 | $2,450 |
| Montreal | $537,700 | $533,100 | $4,600 | $111,460 | $109,170 | $2,290 |
| Calgary | $589,000 | $588,600 | $400 | $120,670 | $118,980 | $1,690 |
| In Ottawa | $647,700 | $648,900 | $1,200 | $131,210 | $129,650 | $1,560 |
| Edmonton | $401,100 | $399,700 | $1,400 | $86,920 | $85,560 | $1,360 |
| Winnipeg | $362,700 | $361,600 | $1,100 | $80,020 | $78,820 | $1,200 |
| Halifax | $548,800 | $551,600 | $2,800 | $113,450 | $112,420 | $1,030 |
| Regina | $318,100 | $318,400 | $300 | $72,010 | $71,180 | $830 |
| Fredericton | $308,200 | $311,800 | $3,600 | $70,230 | $70,020 | $210 |
| St. John's | $345,200 | $349,700 | $4,500 | $76,880 | $76,720 | $160 |
Canadian cities where accessibility has been improved
Where in Canada is home ownership affordable?
Toronto: Slow summer weather
Although still among the most expensive housing markets in Canada, real estate price growth has stalled in Toronto as home buyers remain firmly on the sidelines. According to the Toronto Regional Real Estate Board (TRREB), a total of 5,391 homes were sold in the Greater Toronto Area in July. That marks a 3.3% increase from the 2023 summer peak, but a 13.2% decrease since June. This is due to the end of the price in the market and the expectation that prices are set to drop significantly in the coming months. Buyers are not willing to move until they see the lowest interest rates fall in the same way, while more supply comes into the market. As a result, the median home price fell by $13,000 between June and July, to $1,097,300. That means, if you're a Toronto buyer, you'll need $5,410 less to buy a home in July, compared to June.
Vancouver: Rebalancing Market
Vancouver home sales continued to slide in July, marking a -5% year-over-year decline as 2,333 properties sold. Meanwhile, sellers continue to enter the market in droves, with new listings up 20.4% compared to July 2023, reports the Real Estate Board of Greater Vancouver (REBGV). That gives home hunters a lot of choice, and puts the market firmly on balance. However, such a combination did little to support the city's median home price, which fell by $9,400, to $1,197,700. As a result, Vancouver homebuyers saw their required income drop by $5,020 in July, putting the west coast city second in terms of improved affordability.
Hamilton: Rising supply lowers prices
Hamilton is one of the few markets in southern Ontario that boasts a median home price below the $1-million mark, but that hasn't helped sales and home prices drop. According to the Realtors Association of Hamilton-Burlington, the number of real estate transactions decreased by 6.6% year over year, with a total of 804 trades. Meanwhile, delivery months in the region rose above four for the first time since 2010 in July. That resulted in a home price increase of $6,400 to $843,500, and the required income of home buyers decreased by $3,510.
Canadian cities where affordability was worst
Lower mortgage rates actually made it easier to buy a home in the 13 markets shown above, but some areas saw more relief than others. Here are the markets where borrowing costs are reduced by very small margins.
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