If you’re considering buying a home in Canada, knowing where it’s affordable is important. That’s because mortgage stress tests can be challenging if you don’t have the income to qualify.
Fortunately, many Canadian real estate markets are still affordable.
Table of Contents
Vancouver may be a beautiful city with incredible views, but it’s also one of the most expensive places in the country to buy a house. Its high demand and a lack of new construction have driven home prices up significantly in recent years. But there are still some affordable places to live in Canada if you’re willing to do some research.
Affordability is a major issue for first-time home buyers across the nation. In fact, a report from Point2 Homes found that renters in 36 of Canada’s 50 largest cities earn less than what they need to purchase a starter home. And even though home prices have fallen slightly in many markets, they are still out of reach for many Canadians.
So where is it affordable to buy a house in Canada? To determine the answer, we analyzed home price data from across the country and looked at how much it would cost to purchase a house in each market based on median incomes. We then ranked the cities and provinces where it was possible for people with median incomes to buy a home with a mortgage payment of 20% or less of their gross annual income.
The top 10 most affordable cities to buy a house in Canada include Winnipeg, Saskatchewan, Edmonton, and Quebec City. These places offer a good quality of life, great schools, and affordable housing options for a variety of income levels.
While buying a home in Vancouver or Toronto isn’t impossible, it’s definitely a long shot for most people on the fence about buying a house in the first place. But there are plenty of other options if you’re willing to be flexible and open-minded about your location.
Despite its reputation as one of the most expensive cities in the country, it is actually relatively affordable to buy a home in Toronto. According to a 2021 survey by real estate agency Zoocasa, it takes about $72,500 a year to qualify for a mortgage in the city. This is an increase of about $5,750 since the same time last year.
But the GTA isn’t the only place where it is possible to find a reasonably priced house. For those willing to travel a bit further, there are plenty of options in other parts of Ontario that offer affordable homes. For instance, Windsor was named the most affordable large-sized Canadian city based on its home prices and income levels. It’s followed by London, Barrie, Hamilton, Guelph, and Waterloo in the list of Ontario’s most affordable cities.
Other Ontario towns where it is affordable to buy a house include Sarnia, St. Catharines, and Kingston. And in the small-sized category, Fort Nelson was deemed the most affordable. Other worthy small cities to consider for affordable housing are Regina, Saskatoon, and Winnipeg.
The general rule for housing affordability is that a mortgage payment should not exceed a third of a household’s income. But it is important to remember that this doesn’t include other costs, such as property taxes, insurance, and strata fees.
British Columbia and Ontario are currently the most unaffordable places in Canada to buy a house, with mortgage payments consuming up to 50% of gross income in these areas. However, there are still plenty of other locations where it is reasonably affordable to buy a house, including in Saskatchewan and Nova Scotia. For example, Halifax-Dartmouth and Saint John have a larger proportion of homes sold at lower prices than what would be considered average in Toronto.
In Calgary, the average home price is just under half a million dollars, much cheaper than houses in Vancouver and Toronto. However, finding affordable homes in the city can still be a challenge for first-time buyers. One way to do this is by finding out about private sales. This is when an owner who wants to sell their house doesn’t list it on the market but instead offers it privately to anyone interested.
This can be a good way to avoid paying extra fees like commissions and other expenses that may be associated with listing your home. Another option is to try and get a deal from a developer who is looking to build new homes in the area. This is often done when there are limited lots available for sale and builders want to sell them quickly.
Another great place to find affordable houses in Canada is by looking at smaller communities. This is because smaller communities tend to have lower home prices than big cities. You can also save money by living in a smaller community because you won’t have to pay for expensive amenities that are typically found in bigger cities.
Buying a house in Canada is not easy for many people, especially singles. However, according to real estate brokerage Zoocasa, there are several Canadian cities where it is affordable for singles to buy a house. They analyzed data from 18 markets and determined that the average home cost in these cities is below what most singles earn.
Getting on the property ladder in Canada can be difficult, especially when it comes to buying a starter home. According to the real estate website Point2Homes, only 35 of the country’s 50 largest cities have any homes available for sale at a price under $200,000. However, there are still some cities where you can get your foot in the door with an affordable purchase.
The cheapest Canadian city to buy a home in is Edmonton, where the average family house costs around $409,986. That is significantly less than Vancouver or Toronto, where you will need a minimum of $800,000 to afford a similar-sized home.
A mortgage in Edmonton can be financed with $72,500 per year, which is a significant increase from the required income last year. Nevertheless, the city remains much cheaper than many other major Canadian cities, particularly Toronto and Calgary.
Edmonton also has the lowest gasoline prices in Canada, which is an important factor when it comes to household expenses. On the downside, Edmonton has higher crime rates than many of the other cities on this list, and it can be very cold during the winter.
Overall, the cheapest place to buy a house in Canada is Lloydminster, Saskatchewan, where you can afford a family home for a minimum of $620,000 per year. Trois Rivieres, Quebec, is another good option for people looking to buy a home on a modest income. Considering that many Canadians are willing to move to afford a house, these locations should be of interest to anyone looking for a new home. Whether you are interested in starting a new life, finding a job, or settling down with your partner, these cities will make your dream of owning a home possible.
Buying a home is one of the biggest financial investments that most people will make in their lifetime. To ensure that you can afford to pay for your new home, mortgage lenders will look at your income, tax, insurance, and other costs to determine how much you can afford to borrow to purchase a home.
Fortunately, there are many places across Canada that offer affordable housing to people looking to move out of their current living situation and start a new chapter in their lives. One of the most affordable cities to buy a house in Canada is located in Quebec.
According to a recent Canadian Real Estate Association study, it’s possible to find an affordable home in some parts of Quebec for less than 40% of your average annual income. The ranking was determined by comparing home prices to average annual incomes and how long it would take for someone to pay off their mortgage if they put 100% of their paycheck towards it each month.
The top three most affordable cities in Quebec to buy a house include Trois-Rivieres, Saguenay, and Quebec City. It will take less than a year on average for someone to pay off their mortgage in these cities, and they also have some of the lowest property taxes in Canada.
Another great place to look for an affordable house in Quebec is the town of Sept-Iles. This small town is a bit of a drive from Quebec City, but it offers an average home price of $206,748 and a property tax of just 1.2%.