In Late-Q2 2026, Toronto saw one of the strongest affordability gains as falling home prices, not easier financing, became the main driver.
Toronto recorded a ~2.5-point affordability improvement after its representative home price fell ~4% during the quarter, leaving the payment-to-income ratio near 68%.
In Toronto, the shift from rate-driven to price-driven gains was especially clear, highlighting how softer prices recently improved buying conditions more than mortgage rates.
For Toronto buyers, mortgage rates were not expected to deliver much additional relief over the next year, making other affordability supports increasingly important.
In Toronto, further affordability improvement increasingly depended on income growth and restrained home-price appreciation, as financing costs were no longer expected to help.