After a year of tight budgets and high borrowing costs, Victoria homebuyers got a small but welcome break in September.
According to Ratehub.ca’s September 2025 Affordability Report, 11 out of 13 major Canadian cities saw it become easier to qualify for a mortgage compared to August, including Victoria.
In September, the average home price in Victoria fell from $881,000 to $877,900, a drop of $3,100. That price change may seem small, but it trimmed the income required to buy the average home by roughly $900, from $183,210 to $182,310.
Monthly mortgage payments also dipped slightly from $4,520 to $4,495, saving buyers about $25 a month or $300 a year.
“Mortgage rates were relatively flat month-over-month, which means home prices were the primary driving factor for the improvement,” said Ratehub.ca mortgage expert Penelope Graham.
“Home prices had decreased in the majority of the cities we looked at.”
Toronto led the way nationally, with a $9,400 price drop cutting required income by $2,130, while Vancouver followed with a $2,000 improvement.
In western Canada, Calgary, Regina, and Victoria all saw roughly $900–$1,100 less income required than in August, marking steady affordability gains.
On the other end of the spectrum, Montreal and Halifax were the only cities where affordability worsened due to modest home price increases.
The national average five-year fixed mortgage rate edged down to 4.47%, while the stress test eased to 6.47%.
Ratehub.ca’s current lowest available five-year fixed rate is 3.79%, which could save buyers about $233 per month or $2,796 per year on a typical Canadian home valued at $676,000.
“Securing a lower rate will have a big impact on how much you can qualify for,” Graham added. “If you’re shopping for a home or up for renewal, it’s worth locking in today’s lowest rate for up to 120 days.”
With prices levelling off and interest rates holding steady, Victoria’s housing market may be entering a more balanced phase heading into late 2025.
For many buyers, it’s not a dramatic turnaround, but after years of affordability slipping out of reach, even small steps forward are welcome.
