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Homeownership Just Got (Slightly) Easier in Canada — But Not Everywhere

Is the tide finally turning for Canadian homebuyers? According to RBC Economics, affordability inched to its best level in three years—yet Toronto and Vancouver remain tough terrain.

Canada's housing market is showing signs of relief. RBC’s latest national affordability measure dropped to 55.1% in Q1 2025, down from 60.7% a year ago—the sharpest year-over-year improvement in recent memory. This means a typical household now needs to devote less of its income to owning a home, thanks to a combination of interest rate cuts, modest price softening, and steady wage growth.

But before we call it a comeback, let’s look deeper.

Toronto Still a Stretch

Despite the nationwide progress, Toronto remains the second least affordable market in the country, with homeownership requiring 68.3% of the median household income. Only Vancouver ranks higher at 92.7%—a staggering number that underscores how far affordability has to go in Canada’s most in-demand cities.

More promising figures came out of markets like:

  • Edmonton (33.0%)
  • Calgary (42.3%)
  • Ottawa (44.3%)

These cities now stand out as Canada’s most accessible urban housing markets.

Condos Leading the Affordability Recovery

Interestingly, condominiums are seeing the fastest rebound in affordability. RBC notes that cities like Toronto, Edmonton, Saskatoon, Regina, and Winnipeg are now back to pre-pandemic affordability levels for condo buyers. Even Vancouver and Victoria—where price drops accelerated—are showing early signs of condo relief.

What’s Next?

RBC projects continued improvement through 2025, expecting that half of the affordability erosion experienced during the pandemic could be reversed by year-end. That said, future gains will become harder to achieve once rates stabilize. From there, it’s all about price moderation and income growth.

What This Means for You

At Lendworth, we’re seeing firsthand how equity-based lending continues to play a crucial role in helping families navigate the affordability puzzle. Whether you're looking to refinance, buy your first home, or tap into home equity for strategic opportunities, we’re here to provide fast, flexible mortgage solutions across Ontario and beyond.

Explore our equity-based lending options today.

Rates from 8.99% | Fast approvals | Residential & investment properties

📞 Call us or visit www.lendworth.ca to learn more.

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