First time since pandemic, the yield on five-year Government of Canada bonds, which most heavily influence mortgage fixed rates, is going straight up. Any lenders who has not yet announced changes to their fixed rates is expected to do so.

In its latest scheduled update, the Bank of Canada maintained its target for the overnight rate at 0.25% and maintained its ongoing commitment to buying $4 billion bonds per week. This isn’t much of a surprise as the bank signaled its plan to keep rates low until inflation is back to its 2% target, which it doesn’t expect until 2023. 

As of March 11, 2021, the benchmark five-year lending rate was 4.79%. The Bank of Canada was optimistic about the earlier-than-anticipated arrival of the vaccine but says uncertainty is elevated and the outlook remains highly conditional on how the pandemic unfolds. The Bank of Canada’s next scheduled interest rate announcement is April 21.

According Canada Mortgage and Housing Corporation (CMHC), “affordable housing” has been defined as when households spend less than 30% of their gross income on housing.

Research found 10 Canadian markets where mortgages take up less than 15% of a household’s average income. Here they are:

10.  Trois-Rivieres, QC

Share of mortgage in average income (2020): 14.5%

9. Regina, SK

Share of mortgage in average income (2020): 13.3%

8. Winnipeg, MB

Share of mortgage in average income (2020): 12.9%

7. Sherbrooke, QC

Share of mortgage in average income (2020): 12.7%

6. Saguenay, QC

Share of mortgage in average income (2020): 12.4%

5. Oshawa, ON

Share of mortgage in average income (2020): 12.1%

4. Quebec, QC

Share of mortgage in average income (2020): 12%

3. London, ON

Share of mortgage in average income (2020): 11.4%

2. Windsor, ON

Share of mortgage in average income (2020): 11.4%

1. Halifax, NS

Share of mortgage in average income (2020): 10.8%