Home prices dropped. But the size of mortgage payments didn't

While housing prices fell across Canada through much of 2022, the declines did not come close to erasing the gains during COVID-19. At the same time, borrowing costs have spiked over the past year. As a result, for buyers who need a mortgage, housing affordability has not meaningfully improved compared to the peak of the pandemic housing frenzy.

Methodology: Mortgage payments reflect the lowest nationally available mortgage rates for five-year fixed mortgages based on a down payment of 20 per cent and an amortization of 25 years according to Ratehub.ca. The pandemic peak reflects the highest monthly benchmark price reached during 2022. Different housing markets peaked at different times throughout the first half of that year.
ERICA ALINI AND JOHN SOPINSKI / THE GLOBE AND MAIL Source: Ratehub.ca; CREA;TRREB