Rate cuts ease mortgage costs, boosting housing affordability across Canada

Housing affordability improved across Canada in July, with the income required to purchase an average-priced home dropping in all 13 major markets. Ratehub.ca’s analysis has attributed this to lower mortgage rates, following the Bank of Canada’s recent rate cuts. The central bank reduced its benchmark interest rate from 5% to 4.5%, leading to decreased mortgage costs.

The report highlighted Toronto, where the income needed fell by $5,410, and Vancouver, which saw a $5,020 drop. Even more affordable markets like Fredericton, N.B., witnessed a slight decrease in income requirements despite rising home prices, reflecting the broader trend of improving affordability nationwide.