Buying a home in Victoria became slightly more affordable last month, but prospective buyers still need a household income approaching $186,000 to qualify for an average-priced property.
According to Ratehub.ca’s July 2026 affordability report, buyers now need an annual income of $185,620 to purchase an average Victoria home.
That is $580 less than the $186,200 required in June.
The modest improvement came as Victoria’s average home price declined by just $500, falling from $890,100 in June to $889,600 in July.
An estimated monthly mortgage payment on the average home also fell by $16, from $4,603 to $4,587.
Victoria was among 10 of the 13 Canadian markets included in the report where affordability improved during July, although the change locally was considerably smaller than in several other cities.
“Home price changes were the biggest driver of improved affordability this month,” said Jamie David, vice-president of mortgages at Ratehub.ca.
The average five-year fixed mortgage rate offered by Canada’s five largest banks declined slightly from 4.57% in June to 4.54% in July. The mortgage stress test rate used in the calculation fell from 6.57%to 6.54%.
Vancouver recorded the largest improvement of any city studied. The income required to purchase an average Vancouver home dropped by $2,540 after the average price fell by $10,300.
Hamilton and Toronto recorded the next-largest improvements, with the required income declining by $1,850 and $1,680 respectively.
Affordability worsened slightly in Ottawa, Fredericton and St. John’s.
Ratehub.ca based its calculations on a buyer making a 10% down payment with a 25-year amortization period. The estimate also assumes annual property taxes of $4,000 and monthly heating costs of $150.
While July’s figures moved in the right direction for Victoria buyers, the income required remains among the highest of the Canadian cities included in the report, behind only Vancouver and Toronto.
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