Ron Butler, a veteran in the mortgage industry for three decades, highlighted the significant shift in home affordability over the years. He pointed out that in the past, individuals with modest incomes could easily save up the required five percent down payment to purchase a home. However, the current reality, especially in regions like the Greater Toronto Area, is much bleaker.
According to Butler, individuals with stable full-time jobs, even with incomes around $110,000 to $115,000, find it nearly impossible to accumulate a sufficient down payment for a home priced under a million dollars. This contrasts with the situation before 2015, where families earning $115,000 annually had a chance at homeownership, albeit in more affordable areas like Ajax, Burlington, Hamilton, or the Niagara region.
Recent data from the Canadian Real Estate Association (CREA) in March 2026 revealed that the national average home price stood at $673,084, necessitating a down payment of approximately $42,000. However, in pricey markets like the Greater Toronto Area and Greater Vancouver, where average prices exceed a million dollars, the required down payments soar to around $76,000 and $95,000, respectively.
The affordability crisis isn’t confined to Toronto and Vancouver alone; it has spread to various regions across Canada. Mike Moffatt, from the University of Ottawa’s Missing Middle Initiative (MMI), noted this expansion of unaffordability to other locations in recent years.
Analyzing CREA’s March 2026 median house prices, it was estimated that to afford a 10 percent down payment, annual incomes of $122,300 in Calgary, $127,800 in Montreal, and $132,100 in Ottawa would be necessary. Reports by MMI highlighted the stark increase in home prices relative to incomes over the past two decades in various Canadian metropolitan areas, exacerbating the housing crisis.
Butler also emphasized that in Ontario and British Columbia, homebuyers typically belong to the top income brackets or receive substantial financial aid from their parents, tapping into accumulated home equity. As a result, individuals with middle-income levels face severe challenges in affording homes in many Canadian locales.
Moffatt stressed the nationwide spread of the housing affordability dilemma, which has escalated due to population shifts. He cited Tillsonburg, Ontario, as a surprising example of soaring home prices, driven by families relocating to more affordable areas.
The pressing need for wage growth as a fundamental solution to the housing crisis was underscored by Moffatt. He highlighted the importance of balancing rising incomes with housing costs to achieve long-term affordability and sustainability in the housing market.