It became easier to buy a home in 12 of 13 Canadian cities in November
November 2025 Ratehub.ca Affordability Report
After several months of tentative recovery, Canada’s housing market has stalled out once again. According to the latest November numbers from the Canadian Real Estate Association (CREA), home sales fell on a month-over-month basis – down -0.6% from October – and remain 10.7% below activity for the same time period last year.
Chillier activity also came with price cuts; the national average home price decreased by 2% annually, to $682,219.
That gave a slight affordability boost to buyers who are actively in the market; the latest data from Ratehub.ca shows it became easier to buy a home in 12 of 13 major markets nationwide in November, up from 10 cities in October.
The monthly study measures whether or not affordability improves on a monthly basis, based on real estate data, changes to mortgage rates, as well as the mortgage stress test. Affordability is defined by the amount of income a homebuyer would need to earn to afford the average-priced property in their city, as well as the monthly mortgage payment they’d need to make.
As was the case in October, home prices – which softened in most markets – were the main factor impacting purchasing power. However, the 25-basis-point rate cut made by the Bank of Canada on October 29, and corresponding lower bond yields, also made an impact; the average five-year fixed rate used in the study calculations fell to 4.44% from 4.47% in October, with the mortgage stress test lowering in kind to 6.44% from 6.47%.
November 2025: How much did you need to earn to buy a home in Canada?
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 October and November 2025. Average home prices are from the CREA MLS® Home Price Index (HPI).
The city topping the list in terms of improved affordability is Hamilton; home sales continue to slow, now down 12% on a year-to-date basis, according to the Real Estate Association of Hamilton-Burlington. Combined with building supply, overall market conditions are largely balanced, taking the pressure off price growth. As a result, the average home price dropped by $12,500 between October and November, to $734,700, in turn cutting the required income to buy by $2,780. The Hamilton borrower in this scenario would pay $76 dollars less on their monthly mortgage payment, or $912 per a year, in November compared to if they bought in October.
Following the Hammer is Calgary – a market that has seen considerable cooling in recent months. According to the Calgary Real Estate Board, November home sales are down 13.4%, contributing to an $11,300 month-over-month decrease in the average price to $553,900. As a result, the required income to buy a home in Cowtown dropped by $2,470, and the monthly payment by $66 to $2,828.
Of the 13 cities studied, only one saw home affordability worsen. Fredericton saw $330 in additional income required to purchase the average home. This is due to the average home price increase of $2,700. The Fredericton borrower in this scenario would pay $9 dollars more on their monthly mortgage payment, or $108 per a year, in November compared to if they bought in October.
What’s next for home affordability in Canada?
Unfortunately for mortgage shoppers, the era of rate discounts appears to have ended – for now. In its most recent rate announcement on December 10, the Bank of Canada’s Governing Council reiterated that they feel the current policy rate – at 2.25% – is “about right” to support today’s economy as business owners adjust to supply chain challenges and ongoing tariff threats. That means variable mortgage rates won’t be decreasing from their current low of 3.45% for the foreseeable future.
Fixed mortgage rates have recently increased alongside rising bond yields, pushing the lowest five-year term to 3.94%. However, bond yields remain volatile and reactive to a number of market factors that could keep fixed-rate options elevated throughout the new year. It’s important to familiarize yourself with the current interest rate environment if you’re entering the home buying market or if you have a renewal coming up. Consider getting a pre-approval to lock in today’s lowest rate for up to 120 days.
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Penelope Graham, Head of Content
Penelope has over a decade of experience covering real estate, mortgage, and personal finance topics and her commentary on the housing market is featured on both national and local media outlets.