For a while there, it appeared Canada’s housing market was seeing shoots of improvement – but buyers retreated back to the sidelines in November, further dousing price growth and leading to overall improved affordability conditions. As reported by the Canadian Real Estate Association, home sales were largely flat – dipping slightly by -0.6% from October—and remaining nearly 11% below the same time frame in 2024. That led to the average Canadian home price declining by 2%, to $682,219.
As a result, those softening home prices made it easier to purchase property in the vast majority of Canadian urban markets; according to the latest study by Ratehub.ca, affordability ticked higher in 12 of 13 of the nation’s biggest cities. The study, which measures how real estate purchasing power evolves on a month-by-month basis, defines affordability as the amount of income a home buyer would need to earn to qualify for a mortgage in the average-priced home in their city. Ratehub crunches the numbers based on national real estate data, as well as changes to mortgage rates and the mortgage stress test.
In November, slightly lower mortgage rates did help with buying conditions – the average five-year fixed mortgage rates used in the study dropped by three basis points, from 4.47% in October, to 4.44% – but it was lower home prices that largely moved the needle for buyers.
Let’s take a look at how this played out in housing markets across Canada in November.
Housing affordability across Canada’s major cities
The table below shows how affordability evolved between October 2025 and November 2025, in Canada’s main housing markets, based on the income required to qualify for a mortgage. Income required is based on the stress test rates of 6.44% in November, along with a mortgage rate of 4.44%.
| City | October average home price |
November average home price | Change in home price | October mortgage payments | November mortgage payments |
Chnage in monthly payments | October mortgage payments | November income required | Change in income required |
|---|---|---|---|---|---|---|---|---|---|
| Hamilton | $747,200 | $734,700 | -$12,500 | $3,826 | $3,750 | -$76 | $157,400 | $154,620 | -$2,780 |
| Calgary | $565,200 | $553,900 | -$11,300 | $2,894 | $2,828 | -$66 | $122,700 | $120,230 | -$2,470 |
| Vancouver | $1,132,500 | $1,123,70 | -$8,800 | $5,799 | $5,736 | -$63 | $230,900 | $228,610 | -$2,290 |
| Halifax | $563,300 | $553,100 | -$10,200 | $2,884 | $2,823 | -$61 | $122,310 | $120,080 | -$2,230 |
| Montreal | $581,500 | $573,800 | -$7,700 | $2,977 | $2,929 | $48 | $125,780 | $124,020 | -$1,760 |
| Toronto | $956,800 | $951,700 | -$5,100 | $4,899 | $4,858 | -$41 | $197,360 | $195,890 | -$1,470 |
| St. John’s | $400,200 | $394,300 | -$5,900 | $2,049 | $2,013 | -$36 | $91,200 | $89,880 | -$1,320 |
| Regina | $335,100 | $329,300 | -$5,800 | $1,716 | $1,681 | -$35 | $78,800 | $77,510 | -$1,290 |
| Victoria | $873,600 | $870,300 | -$3,300 | $4,473 | $4,443 | -$30 | $181,500 | $180,410 | -$1,090 |
| Edmonton | $412,100 | $408,600 | -$3,500 | $2,110 | $2,086 | –$24 | $93,470 | $92,600 | -$870 |
| Ottawa | $622,700 | $620,400 | -$2,300 | $3,188 | $3,167 | -$21 | $133,640 | $132,880 | -$760 |
| Winnipeg | $380,800 | $378,300 | -$2,500 | $1,950 | $1,931 | -$19 | $87,500 | $86,830 | -$670 |
| Fredericton | $348,500 | $351,200 | $2,700 | $1,784 | $1,793 | $9 | $81,350 | $81,680 | $330 |
This report is for illustration purposes only. Data is based on a mortgage with a 10% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating. Mortgage rates are the average of the Big Five Banks’ 5-year fixed rates in October and November 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?
Hamilton: Cooling home sales pull down prices
Affordability has been steadily growing, now taking the top spot for improvement after coming in second in Canada in October. This is due to a continued lag in sales, which were down 12% on a year-to-date basis, according to the Real Estate Association of Hamilton Burlington. Added to the mix is an influx of available inventory of homes for sale, which further takes the gas off monthly price growth.
The average home price in Hamilton tumbled by $12,500 between October and November, to $734,700. That in turn slashed the required income by $2,780; a Hamilton home buyer would have paid $76 dollars less on their monthly mortgage payment, or $912 per a year, in November compared to if they bought in October.
Calgary: Correcting from sellers’ conditions
For much of 2025, the City of Calgary bucked the slowing sales trend; demand had remained robust, even as transactions dropped off significantly in other major cities such as Vancouver and Toronto. Sales started to ease in the autumn months, however, and an influx of homes for sale further balanced the market. According to the Calgary Real Estate Board, 13.4% fewer sales occurred in November 2025 than in 2024, leading to a decrease of $11,300 in the average price, to $553,900. Within the study, that resulted in the required income decreasing by $2,470 compared to October.
The Canadian cities where affordability worsened
The only city to go against the affordability grain in November was Fredericton; demand has remained fierce in the east-coast city, due to the fact that home prices remain well-aligned with incomes, at an average of $351,200. Combined with the fact that it’s a small market geographically, with limited inventory, and buying conditions remain tilted firmly in favour of sellers.
This resulted in the required income for Fredericton buyers ticking up by $330, as the average home price rose by $2,700 month over month.
How much mortgage can you afford? How much house can you buy?
Ratehub.ca’s monthly affordability report is a real-time measure of how home prices and changing mortgage rates impact home buying power across Canada on a monthly basis. The study is based on home price data, as well as any changes to mortgage rates and the mortgage stress test. You can determine your own affordability by checking out the MoneySense mortgage affordability calculator.
What’s next for Canadian borrowing costs and home affordability?
After reducing its benchmark borrowing rate a cumulative nine times since June 2024, the Bank of Canada appears to be taking a beat; in both its October and December rate announcements, the central bank’s Governing Council stated that they feel the current policy rate of 2.25% is “about right” to both support the economy and keep inflation in check. The Bank noted that Canadian businesses and consumers continue to adapt to the shifting trade landscape, even as prices have increased; both the latest inflation and jobs numbers were more positive than anticipated, further supporting a prolonged rate hold.
While this means there won’t be further variable mortgage rate discounts in the near future, it’s not terrible news for borrowers; as a result of all those previous rate reductions, the lowest five-year variable option in Canada is 3.45%—the best since the summer of 2022.
Fixed mortgage rates, while roughly 50 basis points higher than variable, are also still competitively priced, with the best in Canada currently at 3.94%. The trajectory for fixed rates is less certain, however; bond yields, which lenders use to set their fixed-rate pricing floor, have been elevated recently. This is both in response to expectations that the Bank of Canada is done with rate cuts, but also in reaction to ongoing volatility south of the border. Fixed mortgage rates have increased in recent weeks, and could continue to do so.
For anyone currently shopping for a mortgage rate, it’s smart to secure a rate hold or receive a full pre-approval from a lender in order to secure access to this pricing, often up to 120 days. Should rates move higher during this time frame, you’ll be protected, while still having access to the lowest available option should they move lower during that time frame.
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- The best 5-year fixed mortgage rates in Canada
- Why are mortgages so expensive in Canada?
The post How much income do you need to buy a home in Canada? A look at housing affordability in November 2025 appeared first on MoneySense.