Believe it or not, housing in Canada is getting more expensive again: what should buyers prepare for?
Hello, friends! Today's news provides plenty of food for thought. Recently, many factors such as rising prices for food, gasoline, and more have put pressure on Canadians' budgets. Among the financial difficulties faced by Canadians, real estate in Montreal is officially included, as the market is experiencing another upswing. Housing prices have increased in almost all major cities in Canada over the last month.
Although interest in real estate statistically remains at the same level compared to the record sales figures in history, the market seems to be recovering. Based on data for February, we are seeing a significant strengthening of the situation in many regional markets. Housing in Canada is becoming more expensive for those planning to purchase real estate this spring.
Mortgage lending terms are becoming stricter
The number of homes is growing, so getting a mortgage is becoming more difficult. Statistics are consistent and steady: prices are rising in eleven out of thirteen major cities in the country. Now it has become more difficult for people to purchase their own home due to the need to obtain a mortgage with additional income.
Montreal: the city takes first place in overall price growth. In a short time, the cost of housing rose from $579,900 to $594,200.
Mortgage stress test: previously, a person earning $124,800 a year in Montreal could meet the requirements, but in February this income threshold increased to $127,600.
Your expenses: average monthly mortgage payments for city residents increased by $76.
The entry threshold into the market has significantly increased, so an experienced realtor in Montreal is now more important than ever. A specialist will help analyze the numbers, realistically evaluate options, and ultimately find a truly profitable offer.
Reasons for government concern
Reality has brought many unpleasant surprises to financial regulators. The Bank of Canada spoke out frankly. They stated that for housing to become affordable again, prices must correct themselves or decrease moderately.
However, so far, everything is not going according to plan. If housing prices in major cities continue to grow at such a pace, the authorities will have to look for new ways to influence the situation. That is why every percentage of growth is under close scrutiny.
Light at the end of the tunnel for new home buyers
For everyone looking for a new home, perhaps things will get better soon. Governments are working together to help revive the construction industry in Ontario. This is great news for all those considering the possibility of buying or are in the process of closing a deal.
Tax benefits: buyers of new homes can receive an exemption from paying the 13% Harmonized Sales Tax (HST) for one full year.
Condition: the benefit is valid if the price of the new home does not exceed $1,000,000.
You have a real chance to reduce your family's monthly expenses for this purchase.
Summary and recommendations
Just like in 2026, the real estate market continues to present surprises. A trend toward rising prices is observed despite stagnating demand, so buyers and sellers need to show a high degree of awareness.
Advice for buyers: in conditions of rising income requirements, it is worth obtaining a mortgage pre-approval in advance to lock in terms and accurately understand your real budget.
Advice for sellers: a market revival is your chance, but competition and bank requirements for buyers dictate the need for ideal property preparation for sale.
If you plan to buy or sell real estate, contact me. I will help you understand current trends, find the best property, and ensure the full legal security of your transaction according to Quebec laws.
Denis Kornienko. Your real estate expert in Montreal. Helping families build a secure future in Canada.