But affordability crisis continues to weigh down many hopeful homebuyers
The average credit score among renters is above the mortgage lending threshold set by major banks but lower than the average mortgage holder’s score, according to a new report by residential leasing solutions provider SingleKey.
The company said that average renters had a credit score of 694 – higher than banking giants’ limit of 680 and below the average homeowner score of 764.
Its review of applications filed between January 1 and August 15 showed average monthly rent sat at $2,200.08 and annual income at $112,449.64. The national rent-to-income ratio is 37.62%.
British Columbia renters hold the highest provincial credit scores at 704.28, while Ontario renters face the highest rent-to-income ratio at 39.22%. BC also posts the highest average rent at $2,827.82, compared with Quebec’s $1,664.16.
Major cities reflect even stronger tenant profiles. Toronto and Vancouver renters average credit scores above 729, though Toronto tenants spend 41.12% of income on rent – the highest among large cities. Vancouver rents average $3,095.71 monthly, while Montreal remains the most affordable at $1,520.87.
The data shows most Canadian tenants, with average credit scores above 680, qualify for major bank mortgage rates in 2025.
The high rent-to-income ratios reflect a continuing crisis for renters across Canada, many of whom have seen their ability to save for a downpayment hindered by the high cost of living and rising shelter costs.
Home prices have been declining across many major markets amid a continuing slowdown in Canada’s housing market, with a recent Ratehub.ca study showing affordability improved in most of the country’s largest cities last month.
But many of those declines were marginal – and commentators have highlighted the need for mortgage rates and borrowing costs to move lower before affordability can move back within reach for scores of homebuyers.
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