Victoria joined a list of Canadian cities in which buying a home became slightly more affordable than the previous month, with prospective buyers in the city requiring an annual income of $185,350 to be able to afford an average-priced home.
According to Ratehub.ca’s August affordability report, this number is down by around $270 since July’s report.
The small improvement comes as the average home price reduced from $889,600 in July to $887,300 in August.
An estimated monthly mortgage reduced from $4,587 to $4,580 in that same period, marking a difference of just $7.
Victoria was included in the report as one of the 10 of 13 major cities in Canada that saw an improvement in mortgage affordability.
“Changes this month were solely due to home prices,” said Jamie David, vice-president of mortgages at Ratehub.ca.
“The average of the Big Five Banks’ 5-year fixed rates remained the same and had no impact on affordability this month.”
According to the report, Toronto saw the most substantial increase in mortgage affordability, with homebuyers requiring $1,510 less annual income each year to meet the average.
Montreal and Vancouver followed close behind, with $1,130 and $1,110 less income required respectively.
The report was not as positive for homebuyers in Ottawa, Fredericton and Halifax, which all saw increases in the amount of annual income required to afford a home.
Ratehub says the data is based on a mortgage with a 10% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating.
The mortgage rates are calculated based on the average of the Big Five Banks’ five-year fixed rates in August and July 2026.
While figures continue to become more affordable for prospective buyers in Victoria, the city remains the third most expensive city in Canada to afford a home, behind only Vancouver and Toronto.
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