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How Much Income Do You Need to Buy a Home in Canada? A Fresh Look at Housing Affordability (And Why Lendworth Makes It Easier)

Buying a home in Canada has become increasingly challenging as mortgage rates continue to climb, making affordability a major concern for prospective buyers.

The latest data from Ratehub.ca reveals that in June 2025, homebuyers needed to earn even more income compared to May to qualify for a mortgage in nearly every major Canadian city.

The study tracks affordability monthly using real estate data from CREA, average mortgage rates, and Canada’s strict mortgage stress test. This test ensures borrowers can handle payments if rates rise by 2%, meaning lenders qualify you at much higher rates than you’ll actually pay.

June 2025 Snapshot: Rising Rates, Reduced Buying Power

  • Average 5-year fixed mortgage rates climbed to 4.48% in June (up from 4.38% in May).
  • The mortgage stress test qualification rate rose to 6.48%, making approvals even harder.
  • Affordability eroded in 12 of 13 major Canadian cities.

For example, in cities like Toronto and Vancouver, buyers now need a six-figure income just to qualify for an average home. Even mid-sized cities saw income requirements spike, putting homeownership further out of reach for many Canadians.

The Good News: Lendworth’s Equity-Based Lending Approach

While traditional lenders are tightening approvals and heavily scrutinizing income, Lendworth offers a different solution. As an equity-based private lender, we focus primarily on the value of your property—not your income—to fund your mortgage.

No strict income qualification: Perfect for self-employed individuals, business owners, or anyone with non-traditional income.

Faster approvals: We bypass the slow, rigid bank process.

Flexible solutions: First, second mortgages, and refinancing options tailored to your needs.

Bottom Line

Rising rates and tougher stress tests are making it harder than ever to qualify for a traditional mortgage in Canada. But with Lendworth’s equity-based lending, your homeownership or refinancing goals don’t have to wait.

📞 Contact us today to explore fast, flexible mortgage options—without the income roadblocks.

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