Vancouver remains one of the most expensive housing markets in Canada. Even after price corrections over the past two years, the cost of buying a home still feels out of reach for many buyers. Detached homes hover close to two million dollars, townhouses sit just above one million, and condos often land well into the seven hundred thousand dollar range. That reality has pushed affordability to the top of every buyer’s mind. At the same time, mortgage rates have eased compared to their peak. Five-year fixed rates are now sitting in the low to mid four percent range, with some buyers securing slightly better terms depending on credit, down payment, and lender incentives. While this drop helps, it does not magically make homes affordable. The real issue buyers face today is monthly payment shock.This article breaks down Vancouver home affordability in practical terms. Not guesses. Not rules of thumb. Real monthly numbers. The goal is to answer one question clearly: what can I afford in Vancouver right now based on income, mortgage rates, and actual carrying costs.Vancouver Real Estate Prices Today
To understand affordability, you first need to understand the starting point.Across the City of Vancouver and much of Metro Vancouver, typical prices look roughly like this:Detached homes are near the two million dollar markTownhouses sit around one million dollars
Condos average in the low to mid seven hundred thousandsEven after recent price declines, these numbers remain extremely high relative to household incomes. This gap is why Vancouver real estate prices continue to dominate affordability discussions.For buyers, price is only half the equation. The other half is what those prices translate into every single month.
Vancouver Mortgage Rates and Why They Matter
Mortgage rates directly determine how much of your income goes to housing. A one percent change in rates can swing monthly payments by hundreds of dollars.Today, most buyers are choosing fixed-rate mortgages in the low to mid four percent range. Variable rates are lower, but many buyers prefer payment certainty after the volatility of recent years.Even though rates are lower than they were in 2023 and early 2024, lenders still apply stress test rules when approving mortgages. That means buyers must qualify at a higher rate than the one they actually pay. This limits borrowing power and keeps affordability tight.The takeaway is simple. Vancouver mortgage rates may be lower, but qualification rules still matter just as much as the headline rate.How Lenders Decide What You Can Afford
Most lenders follow a similar framework.Housing costs should generally stay below about thirty to thirty-two percent of your gross household income. This includes:- Mortgage principal and interest
- Property taxes
- Heating costs
- Strata fees, if applicable
Income-Based Affordability Benchmarks
Let’s translate income into real numbers.Household Income of $80,000
Gross monthly income is about $6,700.A safe housing budget lands around $2,000 per month.After property taxes and basic utilities, that leaves roughly $1,600 to $1,700 for the mortgage payment.At today’s rates, that supports a mortgage in the high three hundred thousand dollar range.Realistically, this income level supports a small condo, often outside the core areas of Vancouver, unless a large down payment is available.
Household Income of $120,000
Gross monthly income is about $10,000.A typical housing budget lands around $3,000 per month.After taxes and strata fees, that leaves roughly $2,700 to $2,800 for the mortgage.At current rates, this supports a mortgage in the six hundred thousand dollar range.For many buyers, this answers, "How much house can I afford in Vancouver?" far more clearly than list prices ever could.
Household Income of $160,000
Gross monthly income is about $13,300.A housing budget of $4,000 per month is common.After taxes and basic costs, about $3,600 to $3,700 remains for the mortgage.This level of income allows buyers to consider higher-priced condos, townhouses, or entry-level houses with strong down payments.
Monthly Mortgage Payment Vancouver Breakdown by Price
Now let’s look at actual home prices and what they cost per month.Assumptions used:- Five-year fixed mortgage at around four percent
- Twenty-five-year amortization
- Property taxes estimated conservatively
- Strata fees added where relevant
$500,000 Home
Mortgage payment with minimum down payment sits just above $2,500 per month.Add taxes and strata fees, and the total housing cost approaches $2,900.This fits within a $120,000 household income, but it is tight at lower incomes.
$750,000 Home
The mortgage payment lands near $3,750 per month with a minimum down payment.After taxes and strata fees, the total monthly cost reaches roughly $4,200.This typically requires a household income closer to $160,000 unless the buyer has a large down payment.
$1,000,000 Home
Mortgage payment alone exceeds $5,000 per month with a minimum down payment.Total housing costs often approach $5,300 or more.This is where buyers experience the most shock. Even high incomes struggle to support this level comfortably.
$1,250,000 Home
Monthly costs move well beyond $6,500 per month.This price range usually requires very high household income, large equity, or additional income sources.
$1,500,000 Home
Monthly housing costs often exceed $7,800 per month.This price point is realistic only for top income earners or buyers bringing substantial cash or equity into the purchase.
Why Monthly Payments Matter More Than Price
Many buyers focus on list price because it feels familiar. Monthly payments are where reality hits.Two homes with the same price can have very different monthly costs depending on:- Down payment size
- Mortgage rate
- Strata fees
- Property taxes
- Amortization length
Buying a Home in Vancouver Without Overstretching
The biggest mistake buyers make is aiming for the maximum approval number. That approach leaves no margin for rate renewals, lifestyle changes, or unexpected costs.A smarter Vancouver home-buying budget accounts for:- Comfortable monthly payment
- Future rate changes
- Strata increases
- Property tax growth
- Lifestyle flexibility
The Reality of Vancouver Home Affordability
Even with lower rates, affordability remains strained. The math shows that:Eighty-thousand-dollar incomes are limited to small condosOne hundred twenty thousand dollar incomes fit mid-range condos and some townhouses
One hundred sixty thousand dollar incomes can stretch into higher-priced properties with planningThis gap between incomes and prices explains why so many buyers feel stuck and why expectations must be adjusted.
