The sticker shock of Canadian real estate hasn’t gone away, but the door to ownership is cracking open for those willing to adjust their approach.

From our vantage point, demand hasn’t disappeared; it has adapted. As our friends at Wahi highlighted in their recent survey, prospective buyers are increasingly willing to make meaningful trade-offs to leave the sidelines.

Has home ownership become more attainable? 

To answer that, we partnered with Wahi to take the pulse of housing affordability across 13 large census metropolitan areas. We examined how typical monthly mortgage payments and qualifying incomes have evolved since home prices crested during the pandemic boom, measuring affordability relative to local incomes.To reflect the reality of today’s buyers, our analysis assumes a 10% down payment at the lowest available insured mortgage rate, comparing the impact of both standard 25-year and extended 30-year amortizations.

The results show we haven’t seen a broad return to pre-pandemic prices. Instead, the data reveals that improved affordability in some areas will be driven by price drops,  but mainly improved as a result of the 30-year amortization for first-time homebuyers.

So, what has improved since the peak?

In Canada’s highest-priced markets, specifically Toronto, Vancouver, Victoria, and Hamilton, the cost of carrying a home has come down meaningfully since 2022.

Using a 30-year amortization, monthly mortgage payments declined nationally by roughly 11%, while required qualifying income fell by about 3%. Some of the largest improvements were concentrated in markets that saw the sharpest corrections after the pandemic peak.

According to Wahi Economist Ryan McLaughlin, “Sharp home price declines are the primary driver of reduced ownership costs in Toronto and Hamilton.”

Toronto stands out. Monthly payments declined by approximately 22%, while required qualifying income fell by 19%. Hamilton saw even steeper declines, with payments down 25% and qualifying income down 21%. Vancouver and Victoria also experienced modest improvements, with monthly payments declining by 9% and 7%, respectively.

“We’re seeing first-time home buyers capitalize on this opportunity in the Greater Toronto Area. They’re able to add the conditions they want to their offer, negotiate on price and arrange for a closing date that is on their timeline (not the seller’s),” says Perch Principal Mortgage Broker Alex Leduc.

Smart financing is the key to unlocking today’s market

It’s no secret to a mortgage professional that extending an amortization period lowers monthly payments. That is simply how the math works. But what is critical here is just how powerful that single lever can be for today’s buyer.The data makes it stark: with a 30-year amortization, national monthly payments are down 11%. However, if we look at a standard 25-year amortization, those savings nearly vanish entirely; monthly costs are flat compared to 2022.

This confirms that outside of the markets that saw sharp price corrections (like Toronto and Hamilton), the opportunity for buyers isn’t primarily driven by cheaper homes or lower rates.

Instead, for the average Canadian buyer, access to homeownership is being unlocked through smarter financing strategies, like the expanded eligibility for 30-year insured amortizations introduced near the end of 2024. Nationally, savvy buyers are gaining access not because the asset is significantly cheaper, but because they are utilizing extended timelines to soften higher carrying costs.

Where affordability worsened

While the headlines often focus on the big improvements in Canada’s largest cities, the data reminds us that real estate is local. A different pattern is emerging in mid-sized markets, where strong demand is driving prices higher. Several mid-sized and historically more affordable markets saw ownership costs rise sharply between 2022 and 2025. Quebec City is a notable example. Estimated home values increased by approximately 31%, monthly payments rose by 28% under a 30-year amortization, and required qualifying income increased by 33%. While its qualifying income of roughly $100,000 remains far more attainable than Toronto’s $210,000, the trend is unfortunately moving in the wrong direction.

Calgary and Saskatoon also recorded double-digit increases in both monthly payments and income requirements. In Edmonton, while the increases were more moderate at 6%, the trend still points to rising costs rather than relief. Instead, price growth combined with higher interest rates pushed ownership further out of reach for many local buyers.

Affordability improved, but only in relative terms

If we define affordability by comparing median household income to required qualifying income, seven major markets show improvement since 2022. These include Hamilton, Toronto, Ottawa–Gatineau, Halifax, Vancouver, Victoria, and Regina. In these markets, households are closer to qualifying today than they were at the peak. However, “closer” does not necessarily mean “close.”

Nationally, median household income still represents only about 64% of the qualifying income required for a typical home. This will vary significantly by city, with the lowest being Vancouver (38%) and Regina being the highest (131%) as you can see in the chart below.

How to close the gap

If your household income falls short of the “required” amount, that doesn’t mean homeownership is off the table. The “qualifying income” calculation is rigid, but your financial picture doesn’t have to be.

Smart buyers are using specific strategies to bridge the gap:

• Rental Income: Many lenders allow you to use income from a secondary suite (basement apartment or laneway house) to boost your qualifying income.
• Debt Optimization: Debt levels can have a material impact on what you qualify for. Strategically paying off a monthly car payment or line of credit can sometimes increase your qualifying amount more than a salary raise would increase it.
• Co-Signers & Guarantors: Adding a parent or partner to the application can increase what you qualify for.

This is where expert advice is worth its weight in gold. A Perch mortgage advisor can look at your specific situation and identify which lenders will view your income most favorably.

A note on the data

Price trends in this report are based on the RPS-Wahi House Price Index (HPI), which tracks how home prices move over time within each market. Estimated home values apply those index changes to representative prices to calculate mortgage payments and qualifying income. In short, the HPI shows direction, while estimated home values show impact.

What this means for buyers: Opportunity favors the prepared

The housing market today looks meaningfully different than it did in 2022. Conditions have improved, particularly in Canada’s most expensive cities. But simply waiting for prices to drop further isn’t the winning strategy. For buyers, the opportunity lies in understanding where flexibility exists: how mortgage structure  affects qualification, which lenders offer the best terms, and what trade-offs make sense in your specific market.

The market has changed, and your strategy needs to change with it. That’s where Perch shines. By combining cutting-edge technology, advanced algorithms and artificial intelligence, with expert advice, we help you find the levers, like extended amortizations or optimal lenders, that turn what might feel “impossible” into “you’re approved”.

Home ownership is getting easier, but navigating the options is more complex than ever. Don’t leave your approval to chance. Sign up for Perch today to work with one of our licensed advisors and to see exactly how much affordability Perch can unlock for you.