Rising rates and home prices squeezed buyers across Canada last month, with Ottawa hit hardest.
April was brutal for anyone trying to buy a home in Canada. Mortgage rates climbed from 3.79% to 4.04% for five-year fixed terms, while home prices kept rising in almost every major city. The result? You now need thousands more in annual income to qualify for the same mortgage you could have gotten just a month earlier.
The real kicker is timing. If you were house hunting in March and didn't lock in a rate hold, you're now looking at needing an extra $2,000 to $3,000 in annual income to qualify for the same home. Ottawa buyers got hit worst — they need to earn $3,150 more than last month to buy the average home there.
This isn't a temporary blip. Bond markets are jittery about global conflicts and inflation, which means mortgage rates could climb higher before they come down. The Bank of Canada might even raise rates again this year if inflation keeps climbing.
What You Can Actually Do Today
- Get a mortgage pre-approval with a 120-day rate hold this week if you're actively house hunting
- Run affordability calculations at rates 1% higher than today to stress-test your budget
- Consider locking in a variable rate if you can handle payment increases and want lower rates now
Mortgage rates change daily. Your actual rate depends on your credit score, down payment, and lender.
