However, there are some green shoots—the same report indicates conditions are starting to firm up in some local markets, with monthly sales increases starting to eat into built-up inventory. Overall, though, market conditions remain firmly in buyers’ favour—and that’s reflected in today’s home prices, which are relatively soft compared to the pandemic-era market. The national home price benchmark, which strips out the high and low sales extremes, remains 3% below 2024 levels.
For anyone looking to buy a home in October, that meant decent affordability conditions in 10 of 13 of Canada’s major markets, according to the latest affordability study from Ratehub.ca. This monthly report gauges how affordability evolves in real time in the country’s 13 largest urban centres, based on real estate data, mortgage rates, and the mortgage stress test. Affordability is defined by the amount of income a buyer would need to earn to qualify for a mortgage on the average-priced home in their city.
Mortgage rates were largely unchanged over the course of the month, with discounts only passed on by lenders towards the final days of October, when the Bank of Canada cut its benchmark rate by a quarter of a percentage point, and bond yields dipped in response. The average five-year fixed mortgage rate used in the study stayed the same as September at 4.47%, with a corresponding mortgage stress test of 6.47%.
That meant for the majority of the month, home prices were the main factor impacting affordability.
Let’s unpack how this impacted home purchasing power in markets across Canada in October.
Housing affordability across Canada’s major cities
The table below shows how affordability evolved between September 2025 and October 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 6.47% in both September and October, along with a mortgage rate of 4.47%.
| City | September average home price | October average home price | Change in home price | September mortgage payments | October mortgage payments | Chnage in monthly payments | September income required | October income required | Change in 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’s | $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 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 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 firming borrowing costs and early signs of recovering sales, just one housing market bucked the trends of worsening affordability.
Vancouver: Conditions tilted towards buyers
While still Canada’s most expensive real estate market, the City of Vancouver experienced the greatest improvement in affordability between September and October, as sales dropped and built-up inventory continued to expand. According to data from the Greater Vancouver Realtors (GVR), home sales decreased 14.3% year over year in October, remaining 14.5% below the region’s 10-year average.
That resulted in the average home price to fall $9,600 on a monthly basis, to $1,132,500, and the required income to purchase a home by $1,800. Given this persistently high home price threshold, buyers remain firmly on the sidelines; “Even the fourth cut this year to the Bank of Canada’s policy rate this October wasn’t enough to entice more buyers back into the market,” said GVR Chief Economist Andrew Lis, in the board’s October release.
Hamilton: Oversupply puts the chill on price growth
Slower economic conditions have also put the damper on Hamilton real estate; according to the Realtors Association of Hamilton-Burlington, October home sales remain 34% typical levels for the month, as persistently high supply levels put downward pressure on prices, says spokesperson Nicolas von Bredow.
“Many were hopeful that the recent policy rate cut from the Bank of Canada would attract more buyers; however, slowing economic conditions and a decrease in migration are likely continuing to weigh on confidence in the market,” he states in the association’s October release.
Hamilton’s average home price dropped $6,100 month over month in October to $747,200, and the required income by $1,150, placing the Golden Horseshoe city in second place in terms of improved affordability.
Edmonton: Easing back to balance
After a hot run in 2024, Edmonton’s housing market has eased towards balance this year, as sales have chilled 17% annually, and new listings have recovered by nearly 15%.
