The income required to qualify for a mortgage to purchase an average-priced home rose in 10 of 13 Canadian markets in March, according to a new report from Ratehub.ca. This occurred despite the average rate for a five-year fixed-rate mortgage falling from 4.41% to 4.39% between February and March.
Key Findings
Halifax saw the largest increase in required income, rising by $2,270 to $123,120 for an average home price of $571,700. The price increase of $13,100 from February drove this change, with monthly mortgage payments rising by $61 to $2,905.
The federal stress test remains a significant hurdle, requiring borrowers to qualify at 200 basis points above the offered rate, meaning buyers in the study would have needed to qualify at 6.39%.
Calgary and Vancouver
Calgary ranked seventh in the study, with buyers needing an additional $500 in March, bringing the required income to $122,100. The average home price in Calgary was $566,200, up $4,200, while monthly payments increased by just $16 to $2,876.
Vancouver, Canada's most expensive market, required an income of $224,000 in March, up $400 month-over-month. The average price rose $4,000 to $1,104,300, and the mortgage payment reached $5,609, a modest $6 increase from February.
The report highlights the growing challenge for prospective homebuyers, as rising prices outpace slight declines in mortgage rates, making homeownership increasingly unattainable in many markets.
