Proving there isn’t a ‘Canadian housing market’ per se, a new report from Ratehub.ca breaks out the differences between what Canadians need to earn in yearly income to buy a home in 13 markets across the country. Ratehub.ca’s affordability report shows seven of 13 major cities saw improvements in mortgage affordability in April 2025, illustrating how changing mortgage rates, stress test rates, and real estate prices impact the income needed to buy a home, as well as the corresponding monthly mortgage payments, according to Ratehub.ca's Penelope Graham. “Month-over-month we saw a fairly even split between affordability worsening and improving amongst the 13 cities studied,” says Graham. “Seven cities saw affordability improve and six cities saw affordability worsen.” “Since mortgage rates remained unchanged in April, it was home prices that most impacted home affordability in each of the cities.” Not surprisingly, Hamilton, Toronto and Vancouver saw the largest drop in average home prices in April from March. The three cities have had the highest average home prices and highest sales volumes in the country for at least three years. However, this spring has seen a drop in sales and a matching drop in prices in the three cities. .“A steep decline in home sales, coupled with building supply, has helped lower home prices in a number of Canada's largest markets,” says Graham. “According to the Canadian Real Estate Association, national home sales were down 9.8% on an annual basis in April, with the largest drops concentrated in the Greater Golden Horseshoe markets, including Toronto and Hamilton. This has placed them firmly at the top of our comparison in April for improved affordability.” “Hamilton saw the most significant decrease with $1,800 less income required to purchase the average home (priced at $166,500, down from $168,300). This is due to home prices falling by $9,600, the biggest drop of all the cities.” At the other end of the scale was the Queen City of the Plains, Regina, says Graham. “Regina saw the most significant increase with $1,730 in additional income required to purchase the average home (priced from $76,600 up to $78,330),” says Graham. “This is due to home prices rising $9,100, the highest increase of all the cities.” .“Monthly mortgage payments were impacted only by home prices this month,” adds Graham. “The Hamilton borrower in this scenario would save $49 dollars on their monthly mortgage payment, $588 per a year in April compared to if they bought in March. The Regina borrower in this scenario would pay an additional $46 dollars on their monthly mortgage payment, $552 per a year.” Ratehub.ca’s calculations are based on average mortgage rates, says Graham. “The lowest five-year fixed rate as of May 22 was 3.84%,” she says. “We’ve used the average of the Big Five Bank’s rates in our calculations. Securing a lower rate, such as 3.84%, would have a big impact on how much you can qualify for.”
