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Economic Viewpoint

Desjardins Affordability Index

Canada’s Homeownership Affordability Relief Is Already Fading

April 14, 2026
Kari Norman
Senior Economist

Highlights

  • Nationwide, homeownership affordability has improved recently as weak home sales have pushed down selling prices, mortgage rates have fallen and average household incomes have risen. While this improvement is welcome, it has only partly unwound the post-pandemic damage to affordability, and the picture varies widely by province.
  • Looking ahead, not only are no further policy rate cuts expected, but financial markets are now pricing in rate hikes—leaving variable-rate borrowers without the tailwind that supported improved affordability through much of 2025. For those seeking the stability of a fixed-rate mortgage, the news is already worse as longer-term borrowing costs have moved higher. Many provinces should also continue to see moderate price pressures in the near term, as better affordability supports stronger demand. Taken together, affordability is likely to plateau or worsen modestly in most provinces through 2027.
  • On the other hand, if a sustained rise in oil prices reignites inflation and hastens interest rate hikes, homebuying affordability will likely worsen as higher mortgage rates are expected to more than offset any savings from lower prices in a softer housing market.
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.