Home affordability improves in 10 of 13 Canadian cities in July
“Home price changes were the biggest driver of improved affordability this month,” said Jamie David, VP of Mortgages at Ratehub.ca, Ontario.
“The average of the Big Five Banks’ five-year fixed rates decreased very slightly, but not enough to meaningfully impact affordability.”
Fern Glowinsky of Haventree Bank believes the Bank of Canada is likely to hold rates steady in September, while encouraging borrowers to explore their options as economic and housing market conditions continue to improve.https://t.co/QRWQ3Xwn95
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 20, 2026
Vancouver leads gains as home prices cool
Vancouver recorded the steepest improvement of any market in the study, and remains one of Canada’s most-watched housing markets. The income required to purchase the average-priced home fell by $2,540 — from $226,400 in June to $223,860 in July — as the average home price dropped by $10,300, the largest price decline of any city tracked.
Monthly mortgage payments in Vancouver fell by $70, translating to $840 in annual savings compared to purchasing in June 2026.
Hamilton followed with the second-largest improvement: buyers needed $1,850 less in qualifying income as the average home price fell by $7,600, with monthly payments declining by $51, or $612 annually.
