Income Growth No Match For Climbing Mortgage Costs In Canada

Back in 2013, the average monthly mortgage payment in Hamilton-Burlington was just a dreamy $1,680. By 2023, it had risen to $5,034 – a dramatic increase of $3,354. Wages did not keep pace.Sky-high mortgage rates are the topic of conversations at both dinner tables and boardrooms across the country as of late. From coast to coast, Canada’s home prices have been on a consistent upward climb since 2013 – with this rate rapidly accelerating during the pandemic.

In September 2022, the rate surged to 4.34%. That brings us to September 2023, when the five-year fixed rate was at a peak of 5.49%. Gulp. Back in 2013, the average monthly mortgage payment in Hamilton-Burlington was just a dreamy $1,680. By 2023, it had risen to $5,034 – a dramatic increase of $3,354. Barrie experienced a similar story, with the average monthly mortgage payment rising from $1,442 in 2013 to $4,778 in 2023. At the same time, the average price for a home in Hamilton-Burlington and Barrie District increased by more than $500,000 between 2013 and 2023, largely driving this increase in monthly mortgage payments.

In some cities, relatively affordable home prices kept mortgage costs down – you just need to embrace a bitter-cold winter as a trade-off. The only three cities that experienced less than a 50% increase in mortgage payments were Saskatoon , Edmonton , and Regina . These were also the only cities where home prices increased by less than $60,000, with Regina home prices only increasing by $10,600 from 2013.

In general, the results aren’t surprising. Both Hamilton and Barrie – cities already being quickly developed prior to COVID-19 – saw their home prices explode during the pandemic, when homebuyers turned their sights and dollars outside of the city confines, in search of larger and more affordable pastures than Toronto had to offer.

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