For anyone who wanted to buy a house in October, this meant decent affordability conditions 10 of Canada’s top 13 marketsaccording to the latter affordability research by Ratehub.ca. This monthly report measures how affordability is developing in real time in the country’s thirteen largest urban centers, based on real estate data, mortgage rates and the mortgage stress test. Affordability is defined by the amount of income a buyer would have to earn to qualify for a mortgage on the average-priced home in their city.
Mortgage rates remained largely unchanged over the month, with discounts not being passed on by lenders until the final days of October, when the Bank of Canada cut its benchmark rate by a quarter of a percentage point and bond yields fell in response. The average five-year fixed mortgage rate used in the study remained the same September at 4.47%, with a corresponding mortgage stress test of 6.47%.
That meant house prices were the main factor affecting affordability for most of the month.
Let’s take a look at how this affected the purchasing power of homes in markets across Canada in October.
Housing affordability in Canada’s major cities
The table below shows how affordability evolved in Canada’s major housing markets between September 2025 and October 2025, based on the income needed to qualify for a mortgage. The required income is based on the stress test rates of 6.47% in both September and October, along with a mortgage interest rate of 4.47%.
| City | September average house price | Average house price in October | Change in house price | September mortgage payments | October mortgage payments | Change in monthly payments | September income required | October income required | Change of income required |
|---|---|---|---|---|---|---|---|---|---|
| Vancouver | $1,142,100 | $1,132,500 | -$9,600 | $5,848 | $5,799 | -$49 | $232,700 | $230,900 | -$1,800 |
| Hamilton | $753,300 | $747,200 | -$6,100 | $3,857 | $3,826 | -$31 | $158,550 | $157,400 | -$1,150 |
| Edmonton | $417,000 | $412,100 | -$4,900 | $2,135 | $2,110 | -$25 | $94,410 | $93,470 | -$940 |
| Ottawa | $627,200 | $622,700 | -$4,500 | $3,211 | $3,188 | -$23 | $134,500 | $133,640 | -$860 |
| Victoria | $877,900 | $873,600 | -$4,300 | $4,495 | $4,473 | -$22 | $182,310 | $181,500 | -$810 |
| Toronto | $960,300 | $956,800 | -$3,500 | $4,917 | $4,899 | -$18 | $198,030 | $197,360 | -$670 |
| Calgary | $567,900 | $565,200 | -$2,700 | $2,908 | $2,894 | -$14 | $123,200 | $122,700 | -$500 |
| St. John | $402,100 | $400,200 | -$1,900 | $2,059 | $2,049 | -$10 | $91,570 | $91,200 | -$370 |
| Regina | $337,000 | $335,100 | -$1,900 | $1,726 | $1,716 | -$10 | $79,150 | $78,800 | -$350 |
| Winnipeg | $381,500 | $380,800 | -$700 | $1,953 | $1,950 | -$3 | $87,650 | $87,500 | -$150 |
| Montreal | $578,900 | $581,500 | $2,600 | $2,964 | $2,977 | $13 | $125,300 | $125,780 | $480 |
| Halifax | $559,100 | $563,300 | $4,200 | $2,863 | $2,884 | $21 | $121,510 | $122,310 | $800 |
| Fredericton | $341,000 | $348,500 | $7,500 | $1,746 | $1,784 | $38 | $79,910 | $81,350 | $1,440 |
This report is for illustrative purposes only. Data is based on a mortgage with a 10% down payment, amortization over 25 years, annual property taxes of $4,000, and monthly heating of $150. Mortgage rates are the average of the Big Five Banks’ five-year fixed rates in September and October 2025. Average home prices are from the CREA MLS® Home Price Index (HPI).
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Canadian cities where affordability improved
Where in Canada is owning a home becoming more affordable?
Amid rising borrowing costs and early signs of sales recovery, only one housing market has bucked the trend of worsening affordability.
Vancouver: Conditions tilt towards buyers
While the City of Vancouver remains Canada’s most expensive real estate market, the City of Vancouver experienced the greatest improvement in affordability between September and October as sales declined and accumulated inventory continued to grow. According to data from the Larger real estate agents in Vancouver (GVR), October home sales fell 14.3% year over year and remained 14.5% below the region’s 10-year average.
That resulted in the average home price dropping by $9,600 month-over-month to $1,132,500, and the required income to buy a home dropping by $1,800. Given this persistently high house price threshold, buyers remain firmly on the sidelines; “Even the fourth cut this year in the Bank of Canada’s policy rate in October wasn’t enough to attract more buyers back to the market,” GVR chief economist Andrew Lis said in the board’s October report.
Hamilton: Oversupply puts pressure on price growth
Slower economic conditions have also put pressure on Hamilton’s real estate market; According to the Realtors Association of Hamilton-Burlington, October home sales remain at the typical level of 34% for the month as continued high supply levels put downward pressure on prices, spokesman Nicolas von Bredow said.
“Many were hopeful that the Bank of Canada’s recent policy rate cut would attract more buyers; however, slowing economic conditions and a decline in migration are likely to continue to weigh on market confidence,” he said in the association’s October press release.
Hamilton’s median home price fell $6,100 month-over-month in October to $747,200, and required income fell $1,150, putting the Golden Horseshoe city in second place in terms of improved affordability.
Edmonton: Getting back into balance
After a hot spell in 2024, Edmonton’s housing market has returned to equilibrium this year as sales fell 17% annually and new home additions rebounded nearly 15%.
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