The Average Home Mortgage Payment in 2024: US vs. Canada
Written by
Quinlan Grim
Edited by
Levi Leidy
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Do you ever find yourself thinking about moving to another country for a more affordable mortgage? While there are many reasons to explore the world, a cheaper mortgage might not be one of them — especially if you’re choosing between the U.S. and Canada.
Mortgage rates and home prices in both countries have been fairly high for the past few years. However, prices in Canada are higher on average than in the U.S. Here’s an overview of the average home mortgage payments in Canada and the U.S., plus the differences between each country’s housing market.
Average Home Mortgage Payment in the US
As of August 2024, the average interest rate for a 30-year fixed-rate mortgage in the U.S. is 6.46%. The average rate for a 15-year mortgage is 5.62%. Those high interest rates combined with higher-than-usual home prices mean monthly mortgage payments have nearly doubled in the past four years.
The average monthly mortgage payment in the U.S. is around $2,209, according to data from the National Association of Realtors — although some sources estimate it’s even higher. This number varies dramatically by state. California, for example, has the highest average monthly payment at over $2,500, while West Virginia’s average monthly payment is around $960.
Average Home Mortgage Payment in Canada
Thinking you’ll 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. That’s lower than it has been in months past, but still high compared to pre-pandemic rates.
Now let’s talk monthly payments. The national average payment for a 25-year payment plan in Canada is $3,524 CAD, or roughly $2,614 USD. That means the national average monthly payment in Canada is higher than the average for the most expensive state in the U.S.
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Canada vs. US Housing Market
Both Canada and the U.S. have seen skyrocketing home prices and mortgage rates since the COVID-19 pandemic. 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? Not exactly. 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.
There’s no way around it: owning a home in Canada is more expensive than in the U.S. This could be due to a number of factors, but home availability is one of the most notable — there are simply more accessible homes in rural areas across the U.S., whereas Canadian real estate is generally centralized in urban areas.
Where Is the Best Place To Buy a Home?
If you’re searching for the best place to buy a home in the U.S. or Canada, your best bet is to look for low-cost markets in rural areas or those areas less impacted by the recent rise in prices. Remember that average home prices vary from city to city as well as from state to state.
Some of the most affordable housing markets in the U.S. are:
- Pittsburgh, Pennsylvania
- Syracuse, New York
- Jackson, Mississippi
- Toledo, Ohio
In Canada, you’ll find below-average home prices in:
- Red Deer, Alberta
- Regina, Saskatchewan
- Edmonton, Alberta
- Thunder Bay, Ontario
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