If you're looking to buy a home, there are certain Canadian cities where your money will go further.
A new report has revealed the cheapest cities in Canada to own a home in, offering low house prices and more affordability for those who live there.
In its "Most Affordable Canadian Cities Report," Royal LePage identified the 15 most affordable cities in the country based on the percentage of income required to make a monthly mortgage payment.
The real estate company used provincial median total household income data and city-level aggregate home price data to determine its ranking of the cities, with the mortgage calculation based on a three-year fixed-term loan at 5.71%, amortized over 25 years with a 20% down payment.
According to the report, Thunder Bay, Ontario, tops the list as the most affordable city in Canada.
In the northern Ontario city, the aggregate home price is $299,300 as of 2024, and the provincial median total household income is $84,400. The city offers an "affordability factor" (the percentage of income required to pay a mortgage payment) of 22%, according to Royal LePage, the lowest on its list.
"Thunder Bay offers the best of both worlds – small city feel with a low cost of living and proximity to nature," said Nathan Lawrence, sales representative and partner at Royal LePage Lannon Realty, noting that the city also "offers many great employment opportunities, from the trades to medical services, and has attracted major businesses to the region."
Following Thunder Bay, Saint John, New Brunswick, was found to be the second-most affordable city in Canada. Here, the aggregate home price is just $267,900, with the monthly mortgage payment costing $1,400.
With the median household income in Saint John at $67,000, according to Royal LePage, the city received an affordability factor of 25.1%.
Rounding out the top three is Red Deer, Alberta. Located between Edmonton and Calgary, about 1 hour and 30 minutes from both cities, Red Deer offers an aggregate home price of $392,900.
With a mortgage payment of $2,049.88 and the median total household income at $95,900, here, 25.7% of a homeowner's monthly income would be required to make a mortgage payment.
Trois-Rivières in Quebec and Edmonton round out the top five, where 28.5% and 28.9%, respectively, of a household’s monthly income is needed to make a mortgage payment.
Most affordable cities in Canada
Here are the 15 most affordable cities in Canada, according to the report:
- Thunder Bay, Ontario
- Saint John, New Brunswick
- Red Deer, Alberta
- Trois-Rivières, Quebec
- Edmonton, Alberta
- Regina, Saskatchewan
- St. John's, Newfoundland
- Quebec City, Quebec
- Sherbrooke, Quebec
- Winnipeg, Manitoba
- Fredericton, New Brunswick
- Saskatoon, Saskatchewan
- Windsor-Essex, Ontario
- Charlottetown, P.E.I.
- Gatineau, Quebec
Of the 15 most affordable cities in Canada, four are located in the province of Quebec and four in the Atlantic provinces. No British Columbia cities made the list.
"Many aspiring homeowners in the country’s largest and priciest urban centres are seriously considering relocating to less expensive cities in order to get a foot on the property ladder," said Karen Yolevski, COO of Royal LePage Real Estate Services Ltd.
According to Royal LePage, when asked if they would relocate to one of Canada's most affordable cities, 54% of respondents in the Greater Montreal Area, 51% in the Greater Toronto Area and 45% in Greater Vancouver said they would consider relocating.
As for where they would go, Quebec City was found to be the most popular destination among respondents in Greater Montreal, while Edmonton was the top choice for Greater Toronto and Greater Vancouver residents.
