20 Jun How much income do I need to qualify for a mortgage in Canada?
Toronto: A surprise entry on the affordability scale
Make no mistake, the city of Toronto continues to be one of Canada’s priciest real estate markets, with the average home clocking in at $1,117,400 in May. However, “The Six’s” typically hot spring selling season has been chilly, with sales down 22% from May 2023. While the Toronto Regional Real Estate Board (TRREB) believes there’s plenty of pent-up buyer demand, would-be purchasers are waiting for lower mortgage rates before making a move.
Combined with an influx of new supply, that’s put downward pressure on home prices, with the average decreasing $5,900 compared to April. That in turn has reduced the income a buyer needs by $1,250, to $215,920.
Canadian cities where affordability worsened
Hamilton: Prices on the rise in the Golden Horseshoe
Hamilton’s popularity has been steadily growing among southern Ontario home buyers, as it boasts more affordable housing stock than neighbouring cities, at an average price of $868,300. However, those relatively cheaper prices helped fuel buyer activity, which pushed the average home price up by $9,400 between April and May—the largest increase of all cities studied.
That’s resulted in the average home buyer needing an income of $171,100 to afford the average-priced home, an increase of $1,550.
Victoria: A small—but sizzling—market
Victoria’s housing market was abuzz in May with sales up 6.4% annually. However, it’s a relatively small market, which means prices can swing more dramatically when demand picks up. According to the study, home buyers there must have an income of at least $172,180—an increase of $1,230 compared to April—to afford the average home price of $874,300 (up $7,600 month-over-month).
Ottawa: Still a steal, but heating fast
The city of Ottawa is one of Canada’s most affordable markets (the average home price was $651,300 in May), but a stable spring market has pushed prices up by $6,500 compared to the previous month. As a result, home buyers there must earn $132,060, an increase of $1,060.
Housing affordability across Canada’s major cities
Check out the chart below to see how affordability changed between April and May in Canada’s main housing markets, based on the income required to qualify for a mortgage.
May 2024: How much do you need to earn to buy a home in Canada?
| City | Average home price in April | Average home price in May | Change in price | Income for April | Income for May | Change in income |
|---|---|---|---|---|---|---|
| Hamilton | $858,900 | $868,300 | $9,400 | $169,550 | $171,100 | $1,550 |
| Victoria | $866,700 | $874,300 | $7,600 | $170,950 | $172,180 | $1,230 |
| Ottawa | $644,800 | $651,300 | $6,500 | $131,000 | $132,060 | $1,060 |
| Calgary | $580,900 | $587,100 | $6,200 | $119,500 | $120,520 | $1,020 |
| Vancouver | $1,206,500 | $1,212,000 | $5,500 | $232,150 | $232,950 | $800 |
| Edmonton | $388,500 | $392,700 | $4,200 | $84,850 | $85,540 | $690 |
| Fredericton | $301,400 | $304,500 | $3,100 | $69,150 | $69,660 | $510 |
| Montreal | $531,300 | $534,300 | $3,000 | $110,550 | $111,010 | $460 |
| St. John’s | $338,400 | $340,900 | $2,500 | $75,820 | $76,210 | $390 |
| Regina | $318,500 | $320,000 | $1,500 | $72,240 | $72,450 | $210 |
| Winnipeg | $356,900 | $358,300 | $1,400 | $79,150 | $79,350 | $200 |
| Toronto | $1,123,300 | $1,117,400 | -$5,900 | $217,170 | $215,920 | -$1,250 |
| Halifax | $550,200 | $539,200 | -$11,000 | $113,960 | $111,890 | -$2,070 |
Please note April numbers have been revised from last month’s report, based on home price updates made by CREA this month.
How much mortgage can you afford? How much house can you buy?
Ratehub’s analysis breaks down regional affordability, leveraging average prices and mortgage rates to determine how they affect overall loan qualification. If you’re looking to break into the market, and you’re shopping around for a mortgage rate, you can crunch your own numbers with the MoneySense Affordability Calculator, which personalizes outputs based on income, existing bills and debt obligations, and overall debt ratios.
