Average monthly mortgage payment up over $3,000 in 10 years in Hamilton and Burlington

While the average income in the cities of Hamilton and Burlington has climbed, so, too, have mortgage rates–and not by a small amount.

According to a recent report by real estate website and brokerage Zoocasa, the average mortgage payment in Hamilton-Burlington (Zoocasa uses combined data) climbed from $1,680 in 2013 to $5,034 in 2023–an increase of $3,354. 

Data from the Realtors Association of Hamilton and Burlington (RAHB) indicates the average price of a home in Hamilton (all home types combined) hit $776,819 in September, while the average home price in Burlington hit $1,058,151. A RAHB press release from October 2013 indicates that the average sale price in the region was $392,013 in September of that year. 

But while price increases account for the rise in monthly mortgage payments, Zoocasa’s report says rising interest rates are also a significant factor. 

“Since 2013, home prices have been on a consistent upward climb, with the rate of increase notably accelerated during the pandemic. At the same time, interest rates remained moderately steady until 2021 when they plunged to the lowest in Canadian history, only to subsequently spike to a 15-year high,” the report reads. 

“Both of these factors have contributed to an increase in monthly mortgage payments, and with income growth struggling to keep pace, some homebuyers are taking a step back from the real estate market.”

To find out how mortgage costs have grown in relation to income, Zoocasa analyzed home prices from September 2013 to September 2023 in 17 cities and calculated what the average mortgage payment would be for each year on an average-priced home, assuming a minimum down payment, a 25 year amortization period and using the five-year fixed rate in September of each year. 

In 2013, the average income in Hamilton-Burlington was $49,200. In 2021 (data for 2022 and 2023 is not available), that number grew to $55,500. 

The Hamilton-Burlington region isn’t an outlier when it comes to increasing mortgage rates. 

The report says that over the last ten years, average monthly mortgage payments increased in every city analyzed, with the majority increasing by more than $1,000. In the Barrie area, an increase of more than $3,000 was also noted. 

The report says the average price for a home in Hamilton-Burlington and Barrie District increased by more than $500,000 between 2013 and 2023, which likely drove the increase in monthly mortgage payments. 

Over the 10-year period, wages increased in both cities by an average of $6,300 (12.8 per cent)–not enough to keep up with the near or over 200 per cent increase in mortgage payments. 

Toronto and Victoria, B.C., have also witnessed significant increases. 

The report says the only three cities that experienced less than a 50 per cent increase in mortgage payments were Saskatoon (45.2 per cent), Edmonton (39.4 per cent), and Regina (29.4 per cent).