In all 13 housing markets in May
Qualifying income thresholds rose in every city
Prospective home buyers across Canada saw their purchasing power erode in May 2026, as fixed rates and home prices climbed.
Two forces converged against buyers last month. The average five-year fixed rate across Canada’s big five banks edged up to 4.49% in May, from 4.47% in April, a modest move, but enough to lift the mortgage stress test rate to 6.49%.
Both mortgage rate and home price changes impacted home affordability this month.
Canada’s already-strained affordability picture has proved difficult to improve, with structural gaps in supply compounding the challenge. The deeper forces driving Canada’s persistent housing unaffordability crisis, including the cost-of-delivery pressures flagged by economists, suggest rate changes alone are unlikely to provide lasting relief.
In Canada’s two most expensive markets, the qualifying bar also moved higher. Vancouver buyers need an annual income of $225,200, up $900 from April, to afford an average home now priced at $1,100,700.
Calgary and Halifax saw more modest increases of $660 and $540 respectively, while Prairie markets Edmonton and Winnipeg registered the smallest gains outside Québec, at $240 and $170.
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