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BOC HOUSING INFOGRAPHIC

How Affordability Shifted Across Canada

How Bank of Canada rate changes affected home prices, mortgage qualification and interest costs across Canada

Housing affordability in Canada moves through three connected channels: home prices, mortgage qualification thresholds, and the ongoing cost of carrying a mortgage. The figures below compare April 2026 with April 2025 using CREA composite benchmark prices and nesto’s insurable mortgage assumptions, providing a consistent year-over-year view of how monetary policy moves through the housing market.

01 · Home prices

Benchmark home price

Year over year, all Canada

—

Year-over-year change

April 2026 $664,400
April 2025 $696,900
Year over year —

Benchmark home prices set the upfront capital required to enter homeownership. National prices are a leading signal of how quickly buyers respond to changing financing conditions and broader Bank of Canada policy.

Source: CREA composite benchmark, same calendar month year over year.

02 · Qualifying income

Income to qualify

Same benchmark home, stress-tested

—

Year-over-year change

April 2026 $125,139
April 2025 $123,683
Year over year —

Mortgage qualification depends on prevailing interest rates and federal stress-test rules. The required household income for the same benchmark home reflects how borrowing capacity changes when rates move, even when list prices do not.

Source: nesto insurable mortgage pricing, 20% downpayment, 25-year amortization, 39% GDS, MQR.

03 · Interest carrying costs

Annual interest carrying costs

Cost to carry the mortgage

—

Year-over-year change

April 2026 $101,225
April 2025 $100,860
Year over year —

Affordability does not end at approval. The annualized interest portion of a mortgage payment isolates financing pressure from principal, taxes and insurance, showing how much it now costs to carry the same home year over year.

Source: nesto insurable mortgage pricing, 80% LTV, 5-year fixed, 25-year amortization.

Qualifying income figures use the minimum qualifying rate (MQR, currently ), defined as the greater of 5.25% or the contract rate plus 2%, and assume a 20% downpayment, 80% loan-to-value (LTV) ratio on nesto’s insurable mortgage pricing, a 39% gross debt service (GDS) ratio, and a 25-year amortization. Calculations exclude mortgage default insurance premiums. These figures represent qualification thresholds, not affordability recommendations.

Interest-carrying costs reflect the annualized interest component of mortgage payments at 80% LTV on an insurable mortgage tied to benchmark composite prices. Calculations exclude principal repayment, property taxes, utilities, insurance and maintenance. Figures illustrate financing cost pressure rather than the total cost of homeownership.

Benchmark home prices are CREA composite values (stats.crea.ca). MQR rules are set by OSFI’s Guideline B-20 (B-20 explained). For illustrative purposes only. Compare current nesto mortgage rates or start an online application. Other terms and conditions apply. Rates are subject to change without notice.

CREA composite benchmark · nesto insurable pricing

PURCHASE / FTHB

The First-Time Home Buyer // Journey

From dream to door · the complete path

150 Days · longest rate hold in Canada
5 Phases on your homeownership journey
$0 Commission to our experts · ever
15 Steps fully mapped for you

Your Homeownership Journey

Every Canadian first-time home buyer goes through the same five phases, in roughly the same order, whether you realize it or not. Mapping them in advance turns guesswork into a plan.

Phase 1 Financial preparation
Step 1

Credit review

Pull your Equifax and TransUnion reports. Score 680+ unlocks the best rates. Fix errors, pay down balances, and avoid taking on new credit.

Step 2

Open an FHSA

$8,000 per year, $40,000 lifetime, tax-deductible. Contribution room accumulates from the year you open the account.

Step 3

Save your down payment

Minimum 5% under $500K, sliding to 20% above $1.5M. Keep funds in one account for at least 90 days before you apply.

Phase 2 Mortgage qualification
Step 4

Know your budget

Run the stress test. You qualify at the higher of your contract rate plus 2% or the 5.25% regulatory floor.

Step 5

Mortgage prequalification

Confirm your borrowing capacity with a licensed nesto expert. No commitment, no credit impact. Rate lock comes later.

Step 6

Document submission

Income, assets, debts: documented at once. Underwriting review begins. Formal approval follows once you have an accepted offer.

Phase 3 Finding your home
Step 7

Choose a buyer’s agent

Your agent works for you, not the seller. Interview at least two. Ask about their experience in your target neighbourhood and price range.

Step 8

Active property search

MLS searches, showings, and value guidance. A prequalification in hand strengthens every offer you make in a competitive market.

Step 9

Draft the purchase offer

Price, deposit, possession date, and conditions: financing, inspection, and condo or strata document review where applicable.

Phase 4 Offer to closing
Step 10

Offer accepted

Conditions period begins, typically 5 to 10 business days. Lock your rate for up to 150 days: the longest hold in Canada.

Step 11

Inspection & due diligence

Licensed inspector ($400 to $700). Review condo status certificates where applicable. Lender confirms your financing.

Step 12

Deposit payment

Conditions removed, the deal is now firm. Deposit (typically 3 to 5% of the purchase price) goes to the listing brokerage in trust.

Phase 5 Legal closing
Step 13

Meet your lawyer or notary

Sign documents and review the statement of adjustments. Budget 1.5 to 4% of price in closing costs.

Step 14

Funds transfer & title

Your lawyer receives mortgage funds from nesto, pays the seller, and registers title and the mortgage charge in your name.

Step 15

Possession day

Keys are released once title transfer is confirmed. Change the locks. Update your address. Welcome home.

The finish line

You turn the key to your new home.

The last step: the one that makes every other step worth it.

Live comparison

nesto rates vs. Big 6 averages

Every rate auto-refreshes via the nesto rate engine and the Big 6 conventional rate tracker. Snapshot updated whenever this page loads.

Term
nesto
Big 6 avg
5-year fixed
4.04%
4.82%
5-year variable
3.40%
4.17%
3-year fixed
4.30%
4.85%
Stress-test floor
5.25%
5.25%

What the spread costs at the bank. Every 0.25% of rate spread on a $500,000 mortgage with 25-year amortization costs roughly $66 a month, or $3,960 over a 5-year term. Run your own scenario on the payment calculator.

Your file

Documents you will need

Have these ready before you apply. Underwriting moves faster when nothing is missing.

Income verification

  • Last 2 years of T4 slips and Notices of Assessment
  • 2 to 3 most recent pay stubs
  • Letter of employment: role, tenure, income
  • Self-employed: 2 years of T1 Generals plus financials

Assets & down payment

  • 90 days of statements for every account
  • FHSA and RRSP account statements
  • Signed gift letter if any portion is gifted

Identity & other

  • Two pieces of government-issued ID
  • Void cheque or direct-deposit form
  • Newcomers: PR card or valid work permit

What happens next

Here’s exactly what working with nesto looks like, from your first click to your closing day.

1

Start your prequalification online

5 minutes on nesto.ca. No commitment, no impact on your credit score.

2

A licensed expert reviews your file

Salaried, no commission, working for you rather than a single lender.

3

Your rate is locked for up to 150 days

Longest rate hold in Canada. Shop with confidence while rates move.

4

Submit your accepted offer

Final underwriting and formal approval on the specific property.

5

Close with your lawyer or notary

Funds transfer, title registration, keys in hand. Welcome home.

Ready when you are

Start your path with nesto.

No commissions, no sales pressure, no haggling. Your best rate up front, a licensed expert who works for you, and the longest rate hold in Canada.

Start my prequalification → or call 1-866-656-7354

Disclaimer. This guide is based on public information and is provided for educational purposes only. It is not financial, legal, or tax advice and should not be treated as a commitment by nesto. Mortgage rules, insured price caps, stress-test methodology, and provincial incentives change over time; the federal rules cited reflect the policy environment as of the last reviewed date. Your individual rate, qualification, and closing costs depend on your financial profile, property, province, and the lender’s underwriting decision.

Rate values displayed in shortcodes auto-refresh on page load. Big 6 averages reflect the conventional posted rate average across Canada’s six largest banks, as published in nesto’s rate tracker. Savings examples are illustrative; your actual savings depend on the spread between rates at the time of application, your mortgage balance, amortization, and term.

Licences held by nesto Inc. are listed on nesto.ca/licences. Copyright © 2026 nesto inc. All rights reserved. Last reviewed April 27, 2026.

RENEWAL

Your Mortgage Renewal // Journey

Switch to savings · the complete path

66% Canadians auto-renew with their bank
15% Lower renewal rates at nesto vs Big 6
150 Days · longest rate hold in Canada
5 Phases · plan ahead, save more

Your path to a better renewal

Two-thirds of Canadians sign whatever renewal letter their bank sends. The five phases below give you the time and leverage to do better, with no haggling required.

Phase 1 150+ days · Know your position
Step 1

Audit your mortgage

Pull your current statement: balance, rate, remaining amortization, and maturity date. Check any prepayment privileges you may have used.

Step 2

Run a payment shock check

Rates from 2019-2021 were ultra-low. Renewing now could mean a 30 to 40% jump in payment. Use the payment shock calculator.

Step 3

Check credit and income

Score 680+ unlocks the best rates. Flag any income or debt changes since your last term.

Phase 2 120 days · Prime shopping window
Step 4

Lock a nesto rate

At 120 days out, access nesto’s 150-day rate hold. Your bank usually waits until 35 days before maturity to commit.

Step 5

Receive your bank’s offer

Expect the offer at least 21 business days before your term ends. The first offer is rarely the best one.

Step 6

Don’t hit auto-renew

66% of Canadians sign the letter as-is. The cost: posted rate, not market rate. Compare before signing anything.

Phase 3 90 days · Compare and decide
Step 7

Stay or switch

Compare your bank’s offer against nesto. Appraisal and legal fees on a switch are often absorbed, and the rate savings usually outweigh them.

Step 9

Stress test: exempt

Since November 2024, OSFI removed the stress test for straight switches at renewal. Insured, insurable, and uninsured all qualify.

Phase 4 60 days · Apply and underwrite
Step 11

Upload your documents

Recent pay stubs, T4s, Notice of Assessment, current mortgage statement, property tax bill. All digital, no branch visit.

Step 12

Mortgage commitment

Underwriting approves. Commitment issued, rate locked. One free rate float-down is included if rates drop before close.

Phase 5 30 days · Close and save
Step 13

Receive renewal statement

Your current lender sends at least 21 days before maturity: balance, payments, and their final rate offer.

Step 14

Legal discharge and transfer

Your solicitor (ON, AB, BC) or notary (QC) handles the discharge and registration. nesto covers most switch costs.

Step 15

New term begins

First payment at your nesto rate. Term savings start accumulating from day one of your new term.

The renewal advantage

Your renewal, renegotiated.

15% lower rates and the longest rate hold in Canada. No haggling required.

Live comparison

nesto rates vs. Big 6 averages

Every rate auto-refreshes via the nesto rate engine and the Big 6 conventional rate tracker. Snapshot updated whenever this page loads.

Term
nesto
Big 6 avg
5-year fixed
4.04%
4.82%
5-year variable
3.40%
4.17%
3-year fixed
4.30%
4.85%
2-year fixed
4.54%
4.81%

What the spread is worth at renewal. Every 0.25% of rate spread on a $400,000 mortgage with 25-year amortization saves roughly $53 a month, or $3,180 over a 5-year term. Run your scenario on the renewal calculator.

Your file

Documents you will need

Have these ready before you apply. Underwriting moves faster when nothing is missing.

Income verification

  • Last 2 years of T4 slips and Notices of Assessment
  • 2 to 3 most recent pay stubs
  • Letter of employment: role, tenure, income
  • Self-employed: 2 years of T1 Generals plus financials

Mortgage and property

  • Current mortgage statement from your lender
  • Most recent property tax bill
  • Property insurance declaration
  • Condo or strata fee statement (if applicable)

Identity and other

  • Two pieces of government-issued ID
  • Void cheque or direct-deposit form
  • 90 days of recent bank statements

What happens next

Here’s exactly what renewing with nesto looks like, from your first quote to your first new payment.

1

Get your renewal quote online

5 minutes on the renewal page. No commitment, no credit impact.

2

An expert reviews your file

Salaried, commission-free, working for you not a lender.

3

Rate locked up to 150 days

Longest hold in Canada. One free float-down if rates drop.

4

Submit your documents

Upload online. Underwriting reviews and issues your commitment.

5

Sign with your notary or lawyer

Discharge and registration handled. Your new term begins.

Ready when you are

Ready to renew with confidence?

No commissions, no sales pressure, no haggling. Your best rate up front, a licensed expert who works for you, and the longest rate hold in Canada.

Get my renewal quote → or call 1-866-656-7354

Disclaimer. This guide is based on public information and is provided for educational purposes only. It is not financial, legal, or tax advice and should not be treated as a commitment by nesto. Mortgage rules and OSFI guidelines change over time; the rules cited reflect the policy environment as of the last reviewed date. Your individual rate, qualification, and switch costs depend on your financial profile, property, province, and the lender’s underwriting decision.

Rate values displayed in shortcodes auto-refresh on page load. Big 6 averages reflect the conventional posted rate average across Canada’s six largest banks, as published in nesto’s rate tracker. The 15% lower rate figure reflects nesto’s January to September 2024 5-year fixed insured rates vs Big 6 posted rates, per the methodology on the mortgage renewal page. Savings examples are illustrative; your actual savings depend on the spread between rates at the time of application.

Licences held by nesto Inc. are listed on nesto.ca/licences. Copyright © 2026 nesto inc. All rights reserved. Last reviewed April 27, 2026.

REFINANCE

Your Refinance // Journey

Unlock equity · restructure · save

80% Maximum loan-to-value on a refinance
$100K+ Typical equity unlocked, tax-free
15% Lower rates at nesto vs Big 6
150 Days · longest rate hold in Canada

Your path from goal to new mortgage

Refinancing is decision-driven, not calendar-driven. The five phases below help you weigh the goal against the cost, run the break-even, and only proceed when the numbers genuinely work in your favour.

Phase 1 Clarify your goal
Step 2

Check your equity

Refinance up to 80% of your home’s appraised value. On a $500K home with $300K owed, that’s up to $100K in cash.

Phase 2 Run the break-even
Step 4

Estimate the penalty

Breaking a fixed mortgage: the higher of 3 months’ interest or the interest rate differential (IRD). Variable: 3 months’ interest only.

Step 5

Add the fees

Legal $700 to $1,500, appraisal $300 to $600, discharge $200 to $400, registration $70 to $150, title insurance $200 to $400.

Step 6

Find your break-even

Total cost ÷ monthly savings = months to break even. Use the refinance calculator and only proceed if you plan to keep the new mortgage well past that month count.

Phase 3 Compare and lock
Step 7

Lock a nesto rate

Access the 150-day rate hold. One free float-down if rates drop before close. The longest rate hold in Canada.

Step 9

Stress test applies

Refinances require requalification at the higher of your contract rate + 2% or the 5.25% minimum qualifying rate (MQR).

Phase 4 Apply and appraise
Step 11

Home appraisal

A licensed appraiser confirms current market value. This sets your maximum loan amount under the 80% LTV cap.

Step 12

Mortgage commitment

Underwriting approves. Final rate locked, penalty calculated, closing date set with your lawyer or notary.

Phase 5 Close and benefit
Step 13

Legal closing

Your solicitor (ON, AB, BC) or notary (QC) handles old mortgage payout, discharge, and new mortgage registration on title.

Step 14

Funds advanced

Cash-out proceeds deposited (tax-free), or debts paid directly to creditors. Old mortgage cleared, new one in place.

Step 15

New term begins

First payment at your nesto rate. Lower interest carrying costs from day one. Goal accomplished.

Equity, working for you

Your equity, working for you.

Lower rates, cash in hand, debts cleared: one mortgage, one payment, one expert in your corner.

Live comparison

nesto rates vs. Big 6 averages

Every rate auto-refreshes via the nesto rate engine and the Big 6 conventional rate tracker. Most refinances are uninsured (80% LTV or less).

Term
nesto
Big 6 avg
5-year fixed
4.04%
4.82%
5-year variable
3.40%
4.17%
3-year fixed
4.30%
4.85%
Stress-test floor
5.25%
5.25%

Three real refinance scenarios. On a $400K balance refinanced at the nesto uninsured rate: a rate drop at renewal of 1.8% saves around $408 a month, $24,500 over 5 years. Consolidating $40K of credit card debt at 19.99% frees up around $444 a month in cash flow. Extending amortization 20 to 30 years frees $500 a month but raises lifetime interest. Run yours on the refinance calculator.

Your file

Documents you will need

Have these ready before you apply. Underwriting moves faster when nothing is missing.

Income verification

  • Last 2 years of T4 slips and Notices of Assessment
  • 2 to 3 most recent pay stubs
  • Letter of employment: role, tenure, income
  • Self-employed: 2 years of T1 Generals plus financials

Mortgage, property, and debts

  • Current mortgage statement from your lender
  • Property tax bill and home insurance declaration
  • Statements for any debts you plan to consolidate
  • Condo or strata fee statement (if applicable)

Identity and banking

  • Two pieces of government-issued ID
  • Void cheque or direct-deposit form
  • 90 days of bank statements

What happens next

Here’s exactly what refinancing with nesto looks like, from your first quote to your funded mortgage.

1

Get your refinance rate online

5 minutes. No commitment, no credit impact.

2

An expert runs your break-even

Salaried, commission-free. Honest answer if it does not pay off.

3

Rate locked up to 150 days

Longest hold in Canada. One free float-down if rates drop.

4

Appraisal and underwriting

Home value confirmed. Stress test completed. Commitment issued.

5

Close with your lawyer or notary

Discharge, registration, funds advanced. New term begins.

Ready when you are

Ready to refinance?

No commissions, no sales pressure, no haggling. Your best uninsured rate up front, a licensed expert who works for you, and the longest rate hold in Canada.

Start my refinance → or call 1-866-656-7354

Disclaimer. This guide is based on public information and is provided for educational purposes only. It is not financial, legal, or tax advice and should not be treated as a commitment by nesto. Savings examples are illustrative; the rate-drop scenario reflects a $400,000 balance refinanced at renewal (no penalty); the debt-consolidation scenario compares credit-card interest at 19.99% against a mortgage addition at the nesto uninsured rate. Your own result depends on your financial profile, credit, property value, province, and the lender’s underwriting decision.

The 80% loan-to-value cap applies to Canadian refinances per federal rules. Refinancing triggers a stress test at the higher of your contract rate + 2% or the 5.25% minimum qualifying rate, unlike a straight-switch renewal which, since November 2024, is exempt from the stress test. Refinancing mid-term typically triggers a prepayment penalty; always run a break-even calculation before deciding.

Licences held by nesto Inc. are listed on nesto.ca/licences. Copyright © 2026 nesto inc. All rights reserved. Last reviewed April 27, 2026.

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