According to a 2025 report by Ratehub.ca, a salary of $115,000 is no longer enough to purchase an average-priced home in many Canadian cities, including Toronto and Vancouver. The report analyzed the income needed to qualify for a mortgage with a 20% down payment, based on the stress test rate of 5.25%.
In Toronto, the average home price was $1,078,000 in early 2025, requiring an income of approximately $210,000. In Vancouver, with an average price of $1,196,000, the needed income was around $235,000. Even in cities like Hamilton and Victoria, incomes above $150,000 were required.
Ron Butler, a mortgage broker with Butler Mortgage, told CBC News in 2025 that the situation has worsened due to rising interest rates and home prices. He noted that a household income of $115,000 would only qualify for a mortgage of about $500,000, far below the average home price in major markets.
The data underscores the growing affordability crisis in Canada, where even above-average incomes fall short of homeownership in the most expensive regions.
