Mortgage affordability worsened in most major Canadian cities in February, according to Ratehub.ca’s monthly Home Affordability Report.
Of the 13 cities analyzed, 11 saw declining affordability. Only Vancouver and St. John’s experienced modest improvements. Montreal led the downturn: average home prices jumped by $14,300 month-over-month, requiring buyers to earn an extra $2,800 annually to qualify.
Despite flat mortgage rates compared to January, surging home prices drove higher income requirements nationwide. The trend coincides with global energy volatility linked to Middle East tensions, which are pushing bond yields-and future fixed mortgage rates-higher.
Ratehub reports the lowest five-year fixed rate now stands at 3.99%, with variable rates at 3.35%. Canada faces a massive mortgage renewal wave, with 1.5 million households already renewed through 2025 and another million due in 2026.