In many major markets an average income family can no longer afford an average priced home according to analysis carried out by lowestratecanada.com. Toronto and Vancouver are famous for their high housing prices but many other cities are becoming less affordable too. In these large cities, average earners have basically no choice but to buy a condo, or stay out of the housing market completely.
Our research took into account the average real estate selling price as calculated by the Canadian Real Estate Association (CREA), average household income provided by Stats Canada, and the average maximum qualifying mortgage amount as calculated by our Canadian mortgage professionals. From here we calculated a ratio based on the average selling price compared to the maximum mortgage approval amount.
Of the 15 major cities in Canada we researched, 4 fell into the “unaffordable†category meaning the average sale price was more than the maximum mortgage approval amount an average income will qualify for. Two cities fell into the “borderline†category as their prices were right at the breakeven point for qualification and nine cities were still consider “affordableâ€.
View our results and see where your city ranks for affordability…
MOST-UNAFFORDABLE: Vancouver, B.C.
Average price of a real estate: $846,978
Average household income: $68,970
Maximum mortgage for average household income: $316,000
Average price to maximum mortgage approval ratio: 268%
UNAFFORDABLE: Toronto, Ontario
Average price of a real estate: $553,193
Average household income: $69,740
Maximum mortgage for average household income: $320,000
Average price to maximum mortgage approval ratio: 173%
UNAFFORDABLE: Victoria, B.C.
Average price of real estate: $483,720
Average household income: $79,350
Maximum mortgage for average household income: $373,000
Average price to maximum mortgage approval ratio: 130%
UNAFFORDABLE: Hamilton, Ontario
Average price of a real estate: $398,239
Average household income: $78,520
Maximum mortgage for average household income: $368,000
Average price to maximum mortgage approval ratio: 108%
BORDERLINE: Calgary, Alberta
Average price of a real estate: $460,338
Average household income: $93,410
Maximum mortgage for average household income: $450,000
Average price to maximum mortgage approval ratio: 102%
BORDERLINE: Montreal, Quebec
Average price of real estate: $320,993
Average household income: $69,150
Maximum mortgage for an average-earning household: $317,000
Average price to maximum mortgage approval ratio: 101%
AFFORDABLE: St. John’s, Newfoundland
Average price of real estate: $337,304
Average household income: $83,020
Maximum mortgage for an average-earning household: $393,000
Average price to maximum mortgage approval ratio: 86%
AFFORDABLE: Saskatoon, Saskatchewan
Average price of a real estate: $335,562
Average household income: $84,730
Maximum mortgage for average household income: $402,000
Average price to maximum mortgage approval ratio: 84%
AFFORDABLE: Edmonton, Alberta
Average price of a real estate: $359,973
Average household income: $91,860
Maximum mortgage for average household income: $441,000
Average price to maximum mortgage approval ratio: 82%
AFFORDABLE: Winnipeg, Manitoba
Average price of a real estate: $264,636
Average household income: $74,040
Maximum mortgage for average household income: $344,000
Average price to maximum mortgage approval ratio: 77%
AFFORDABLE: Halifax, Nova Scotia
Average price of real estate: $282,285
Average household income: $78,690
Maximum mortgage for an average-earning household: $369,000
Average price to maximum mortgage approval ratio: 77%
AFFORDABLE: Ottawa, Ontario
Average price of a real estate: $354,619
Average household income: $97,010
Maximum mortgage for average household income: $469,000
Average price to maximum mortgage approval ratio: 76%
AFFORDABLE: Regina, Saskatchewan
Average price of a real estate: $300,667
Average household income: $88,750
Maximum mortgage for average household income: $424,000
Average price to maximum mortgage approval ratio: 71%
AFFORDABLE: Quebec City, Quebec
Average price of real estate: $263,239
Average household income: $79,140
Maximum mortgage for an average earning household: $372,000
Average price to maximum mortgage approval ratio: 71%
MOST-AFFORDABLE: Saint John, New Brunswick
Average price of real estate: $162,556
Average household income: $70,610
Maximum mortgage for an average-earning household: $325,000
Average price to maximum mortgage approval ratio: 50%
