Latest news with #RateHub.ca
Global News
20-06-2025
- Business
- Global News
Buying a house got costlier in May. What should your household income be?
Signs of a rebound may be emerging in Canada's real estate market after months of declining home prices. While buyer-friendly conditions persist in some markets, many Canadians will have to shell out more for their monthly mortgage payments, a new report shows. The monthly home affordability report by looked at home prices and mortgage rates from 13 Canadian cities. In eight of those cities, mortgage affordability got worse in May. Penelope Graham, mortgage expert at said the buyer-friendly market conditions are unlikely to last for very long. 'While buyers have enjoyed attractive housing affordability conditions throughout the spring, those days may be numbered. The latest May national housing data reveals sales are firming up over the short term,' she said. While mortgage rates remained largely unchanged, rising home prices mean you'd have to spend more money on your monthly mortgage payments, depending on where you live. For most Canadian cities, the annual household income you'd need to get approved for a mortgage has also gone up. Story continues below advertisement In May, the price of the average Canadian home was $691,299. While that is still down 1.8 per cent compared with this time last year, it is an increase of 1.9 per cent compared with April this year. A Royal Bank of Canada report said buyers are expected to dive back into the market as the uncertainty around U.S. tariffs becomes clearer. 'We expect housing market confidence to gradually rebuild as tariff de-escalation lifts some of the uncertainty that hindered activity earlier this year,' RBC economist Robert Hogue said in the report. 1:54 Business Matters: Canada's housing market in holding pattern, CREA data shows Costlier mortgages The data from Ratehub's report is based on a 10 per cent down payment with a 25-year amortization. The city that saw the highest increase in monthly mortgage payments was St. John's, N.L., where someone locking down their mortgage in May would have to pay $45 more and would need an annual household income of $86,450. Story continues below advertisement 'St. John's saw the most significant increase, with $1,690 in additional income required to purchase the average home. This is due to home prices rising ($8,900), the biggest increase of all the cities,' Graham said. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Halifax also saw affordability worsen, with the average resident paying an additional $38 a month for their mortgage. They would need a household income of $122,830 (an increase of $1,430) to buy a house. Regina (increase of $27) and Montreal (increase of $26) both saw monthly mortgage costs go up. In Regina, you would need an annual household income of $79,350 (an increase of $1,020 since April) and in Montreal, you'd need $124,620 (an increase of $980 since April). After a drop in home prices in April, the price for an average home in Toronto rose $3,400 to $1,012,800 in May. A Torontonian would have to spend $17 more ($5,139 a month) and need an annual household income of $206,500 to be able to afford a home. Winnipeg saw monthly mortgage costs rise by $13 a month to $1,968 and the average Winnipegger would need $88,250 annually to be able to buy a house. Edmonton ($7) and Fredericton ($5) both saw minor increases in monthly mortgage costs. In Edmonton, you'd need an annual household income of $96,670, while in Fredericton, you'd need $78,200. The only city that saw no change in affordability was Calgary. The average home price in the city remained the same as in April ($583,000), as did the monthly mortgage cost ($2,958) and annual income needed to buy a house ($125,170). Story continues below advertisement 2:21 Business Matters: May 'another sleepy month' for homebuyers. Will a rate cut wake them up? Where did affordability improve? 'While the majority of the cities saw affordability worsen, the biggest change was actually in Hamilton, where affordability saw a massive improvement, with $3,480 less income required to purchase the average home,' Graham said. The average home price in Hamilton was $183,100 — a drop of $7,500 since May. Story continues below advertisement A Hamilton homebuyer would need an annual income of $163,020 to be able to buy a house. With a 10 per cent down payment and a 25-year amortization, their monthly mortgage rate came down to $3,973 a month. This means that a Hamilton mortgage buyer who locked down their rate in May would save $93 a month compared with someone who locked it down in April. The decline in home prices comes amid the U.S. trade war and President Donald Trump's 50 per cent tariffs on foreign steel and aluminum. Hamilton is home to major Canadian steel producers and faces growing concerns about the potential for layoffs and plant closures as a result of the tariffs. While Vancouver saw the second biggest decline in home prices, with a decline of $7,500, it remains Canada's most expensive housing market by far, with an average home in May costing $1,177,100. Vancouverites also need the highest annual income of any city in Canada at $237,550 a year. They would also have to pay the highest monthly mortgage of $5,973 with a 10 per cent down payment, although it dropped $38 from April. In May, Victoria came in as the third most expensive housing market in Canada after Vancouver and Toronto, though average home prices dropped to $892,700, with the average homebuyer needing an annual salary of $183,750. Monthly mortgage costs dropped $38 to $4,530 a month. Story continues below advertisement Affordability also improved in the nation's capital, with the average Ottawa home price dropping to $629,800. An Ottawa resident would save $7 on their mortgage payment if they bought in May ($3,196 a month) and would need an annual household income of $134,020 to be able to buy a house.
Global News
23-05-2025
- Business
- Global News
Are mortgage rates getting cheaper? Depends on where you live
If you're looking to buy a house this summer or renew your mortgage, there could be good news for you. But whether your rates are going up or down depends on where you live. The monthly home affordability report by looked at home prices and mortgage rates from 13 Canadian cities. In seven of those cities, mortgage affordability improved. While borrowing costs remained largely stagnant in late March and early April, plummeting home sales across Canada contributed to improved affordability, the report said on Thursday. According to the Canadian Real Estate Association, home sales dropped by 9.8 per cent in April. 'The lowest 5-year fixed rate as of May 22 is 3.84%. 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,' Penelope Graham, mortgage expert at said in a news release. Story continues below advertisement 2:05 Business Matters: Canadian home sales fell in February amid tariff uncertainty Where did rates go down? According to the report, the city that saw the most significant improvement in housing affordability in April was Hamilton, Ont. The average home price in Hamilton was $801,400 — a drop of $9,600 from March. A Hamilton homebuyer would need an annual income of $166,500 to be able to buy a house. With a 10 per cent down payment and a 25-year amortization, their monthly mortgage rate came down to $4,066 a month. Story continues below advertisement This means that a Hamilton mortgage buyer who locked down their rate in April would save $49 a month compared to someone who locked it down in March. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The Hamilton borrower in this scenario would save $49 on their monthly mortgage payment ($588 a year) in April compared to if they bought in March,' Graham said. The mortgage figures in this report are based on a mortgage with a 10 per cent down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating costs. Toronto saw the second biggest drop in home prices, with the average home price dropping $7,500 to $1,009,400. A Torontonian would need an annual income of $205,850 to afford a home and their average mortgage payments came in at $5,122 a month — a drop of $38. While Vancouver saw the third biggest decline in home prices, with a decline of $6,300, it remains Canada's most expensive housing market by far, with an average home in April costing $1,184,600. Vancouverites also need the highest annual income of any city in Canada at $238,970 a year. They would also have to pay the highest monthly mortgage of $6,011 with a 10 per cent down payment, although it dropped $32 from March. The two Maritime markets that saw a drop in home prices are Fredericton (average home price of $333,900) and St. John's ($369,400). The annual income needed to buy a home is $78,000 in Fredericton and $84,760 in St. John's. Story continues below advertisement The average monthly mortgage payment for a homebuyer in Fredericton in April was $1,693 (a drop of $11 a month) and in St. John's it was $1,100 (a drop of $6 a month). The two big Alberta markets saw affordability improve marginally. The average Calgary home cost $583,000 in April, a drop of just $400. A homebuyer in that city would need an annual income of $125,170. The average Edmonton home cost $431,100 in April, a drop of just $200, and an Edmontonian would need an annual income of $96,430. Monthly mortgage payments came down by $2 in Calgary ($2,958) and $1 in Edmonton ($2,187). 2:00 Business Matters: Canadian housing market on hold, CREA data shows Where did rates go up? In six out of 13 cities, mortgage rates and home prices have both gone up. Story continues below advertisement The city that saw affordability worsen the most was Regina. The average home price in Regina rose $9,100 to $335,400 and the annual income needed to buy a house rose to $78,330. A Regina homebuyer who locked down their mortgage in April would have to pay $1,702 a month. 'The Regina borrower in this scenario would pay an additional $46 on their monthly mortgage payment ($552 per year),' Graham said. Montreal saw the second steepest hike in housing affordability with the average home price rising $6,300 to $574,900 in April compared to the price in March. A Montrealer who locked down their mortgage in April would have to pay an additional $32 a month with monthly costs of $2,917 compared to one who did so the month prior. They would need an annual income of $123,640. In April, Victoria came in as the third most expensive housing market in Canada after Vancouver and Toronto, with average home prices rising to $897,300 and the average homebuyer needing an annual salary of $184,620. Monthly mortgage costs rose $32 to $2,917 a month. The cost of the average home in Halifax rose by $6,000 to $563,000, with an annual income of $121,400 needed to buy a house. Monthly mortgage payments rose to $2,857. Story continues below advertisement Housing also got more expensive in the nation's capital, with the average Ottawa home now costing $631,200. A homebuyer in that city would need an annual income of $134,300. An Ottawa resident locking down their mortgage in April with a 10 per cent down payment would have to pay $3,203 a month. Winnipeg also saw a marginal worsening of affordability, with home prices rising by $700 to $385,300 and monthly mortgage costs rising by $4 to $1,955. A Winnipeg resident would need an annual income of $87,770 to buy a house, the report said.
