Buying a home in Victoria remains out of reach for many households, despite modest affordability improvements last year, according to a new national report from Ratehub.ca.
The company’s latest affordability analysis shows that while mortgage affordability improved in eight of 13 major Canadian cities in 2025, Victoria continues to rank among the most expensive markets in the country when it comes to the income required to purchase an average home.
According to the report, a household in Victoria needed an annual income of $179,700 to qualify for a mortgage on an average-priced home in December 2025.
That represents a decrease of $4,600 compared to January, reflecting slightly lower mortgage rates and a modest decline in home prices over the year.
The average home price in Victoria sat at $865,000 in December, down roughly $5,100 from the beginning of the year. Monthly mortgage payments also edged down, dropping by about $134 per month, to an average of $4,425.
While those changes signal some relief, Victoria remains significantly less affordable than many other Canadian cities. Only Vancouver and Toronto required higher household incomes to buy an average home in 2025.
In Vancouver, buyers needed to earn approximately $227,300 annually, while Toronto followed closely at $194,430. By contrast, buyers in cities such as Calgary ($120,420), Halifax ($118,350) and Edmonton ($92,690) faced substantially lower income thresholds.
The report found the biggest affordability improvements in Ontario. Hamilton saw the largest shift, with buyers needing $18,610 less income than at the start of the year, while Toronto followed closely with an improvement of $18,590.
Not all markets improved. St. John’s saw affordability worsen the most, with buyers needing $4,810 more income than in January due to sharp home price increases.
Ratehub.ca’s analysis factors in mortgage rates, federal stress test requirements, home prices, property taxes, and heating costs. Mortgage rates declined over the year, but in several cities, rising home prices offset any gains from lower borrowing costs.
Penelope Graham, a mortgage expert with Ratehub.ca, said 2025 largely mirrored trends seen in 2024, though income swings were more pronounced in some markets.
“While mortgage rates fell from the start of the year, it wasn’t enough to offset home price increases in some cities,” Graham said in a statement accompanying the report.
The study is based on the average five-year fixed mortgage rates offered by Canada’s Big Five banks. Ratehub.ca notes that borrowers who secure lower-than-average rates can significantly reduce both monthly payments and the income needed to qualify for a mortgage.
For Victorians hoping affordability will improve more dramatically, the report suggests progress remains slow. While Victoria did see slight year-over-year improvement, the city continues to sit well above the national average for both home prices and required household income.
As interest rates and housing supply remain key factors heading into 2026, the gap between Victoria and more affordable Canadian markets shows little sign of closing quickly.
