Money was the big thing. The CF101 (Voodoo) was originally purchased for $750,000 a unit. That was a figure bashed around when I was still in uniform. I cannot find a cite. In contrast, the Arrow's price tag was considerably more. Voodoos were in production in the US, with no no build costs, just a straight across purchase.
In contrast, 27 million dollars was given out by the Cdn govt for development of the Arrow. A further $260 million was scheduled to be released for 5 test Arrows. To be fair, this included the start up costs - facilities and people - but that would have put the price tag at $287 million, in 1950s dollars, with no sales and only five a/c. And, being the cynic, I believe those costs would have climbed. After all, the government was funding it.
My personal belief is, that despite all the flag waving and improvements in performance, the price tag was too high.
https://en.wikipedia.org/wiki/Avro_Canada_CF-105_Arrow