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Mortgage ratesand home prices in both countries have been fairly high for the past few years.
The average rate for a 15-year mortgage is 5.62%.
This number varies dramatically by state.
Average Home Mortgage Payment in Canada
Thinking youll get a better deal north of the border?
You might be out of luck.
Mortgages work a little differently in Canada than they do in the U.S.
Most homebuyers opt for a short-term mortgage, with a five-year fixed-rate mortgage being the most popular choice.
The average rate for that five-year conventional mortgage is 5.91% as of July 2024.
Thats lower than it has been in months past, but still high compared to pre-pandemic rates.
Now lets talk monthly payments.
Statista forecasts the average home price in the U.S. to rise to $407,000 in 2025.
In Canada, the forecasted average for 2025 is $722,063 CAD, or $535,893 USD.
Do those home prices reflect differences in income?
The U.S. actually has a higher median income than Canada in 2024.
The average cost of living in Canada, however, is lower than in the U.S.
Put simply, income levels in both countries are pretty similar.
Theres no way around it: owning a home in Canada is more expensive than in the U.S. ## Where Is the Best Place To Buy a Home?
Remember that average home prices vary from city to city as well as from state to state.
