Rising food prices
and the soaring cost of filling up at the gas pump are hitting pocketbooks hard, and you can now add
housing prices
to the list of financial stressors, given they rose in many Canadian cities last month according to a report Thursday from Ratehub.ca.
“Demand for Canadian real estate remains frosty compared to recent years, but the most recent price data shows some regional markets are starting to firm up as the early spring market approaches,” the online mortgage company said in a press release.
Ratehub said month-over-month home prices rose in 11 of 13 major cities in February, so homebuyers would have needed more income to qualify for a mortgage in most of those cities.
Montreal
homes had the largest price increase, jumping to an average of $594,200 from $579,900 in 2025 from 2024 on an unadjusted basis. The income required to qualify for a
mortgage
in the city under the
mortgage stress test
was $127,600 in February compared with $124,800 at the start of the year, resulting in a monthly mortgage payment increase of $76.
“Indexed home prices for Canada were up overall,” Mike Rizvanovic, a financial services analyst at Scotia Capital Markets, said in a note, citing a 0.5 per cent month-over-month increase in February.
Rising prices aren’t what policymakers want to see.
“We need house prices to come down so that housing is more affordable,” Carolyn Rogers, senior deputy governor at the
Bank of Canada
, said during a press conference last week following the decision to hold interest rates. “There isn’t really a path to affordability, particularly in some of our big centres, without house prices correcting a bit.”
In an effort to move the needle on
affordability
and revive demand and construction,
Ontario
and the federal government on Wednesday announced that homebuyers can now qualify for a
one-year exemption
from the 13 per cent harmonized sales tax (HST) on newly constructed homes valued at $1 million or less.
Halifax and Fredericton ranked second and third on Ratehub’s list based on the increase in home prices, with those respectively rising to $558,600 from $545,200 and $363,400 from $351,800, increasing monthly mortgage payments by $71 and $60.
The income needed to qualify for a mortgage under the stress test rules rose by $2,650 in Halifax to $120,850, and by $2,260 in Fredericton to $83,810.
In
Toronto
, the average home price rose 0.4 per cent to $938,800, so the income needed to qualify rose by $890 to $193,000.
Affordability improved in Vancouver, where average home prices fell $1,600 to about $1.1 million, and St. John’s, N.L., where they dropped by $6,300 to $389,200.
But rising prices don’t mean that the Canadian housing market is recovering its momentum, with Rizvanovic saying that the national inventory rate tightened up in February compared to January.
Sales in February were down 24 per cent compared to the five-year average and 20 per cent from the 10-year average. Mortgage originations in February were a third below the peak in early 2022.
Ratehub based its mortgage calculations by using a 10 per cent down payment, a 25-year amortization period, $4,000 in annual property taxes and $150 in monthly heating bills. Mortgage rates were the average of the Big Five banks’ five-year fixed rate and average home prices came from the Canadian Real Estate Association’s home price index.
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The work-from-home boom that drove buyers into Canada’s cottage market during the COVID-19 pandemic is now fading as some families return to city life, but limited supply continues to push recreational property prices higher, says real estate brokerage, Royal LePage.
According to the company’s 2026 Spring Recreational Property report, 35 per cent of realtors observed a reversal in earlier migration trends with an increase of full-time residents moving back to urban centres over the last year. — Shantae Campbell, Financial Post
When a young adult is ready to move out, it can be tempting for parents to step in and solve their financial challenges. Families with more flexibility may offer to cover rent shortfalls, top up savings or absorb unexpected expenses. That generosity comes from a place of love, but there is a difference between helping and carrying. Mary Castillo explains the difference and includes suggestions for how you can help your young adult find their wings instead of clipping them. Read more here.
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Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).
McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s
Financial Post column
can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his
mortgage rate page
for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s
YouTube channel
for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.
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