Homeownership became more attainable in eight major Canadian cities in 2025

Lower mortgage rates and falling home prices improved housing affordability in eight of 13 major Canadian cities in 2025. Ontario markets like Hamilton and Toronto saw significant income reductions needed to qualify for mortgages due to price drops. Western cities experienced modest relief, with Vancouver remaining the most expensive. Some smaller cities faced rising costs. The Bank of Canada’s rate cuts helped, but affordability may tighten again in 2026 as prices rise and rate cuts pause.