Whether you’re planning to move, looking for a second home, or want to invest in real estate, you might be interested in places that have affordable real estate. The good news is that the market has cooled slightly from pandemic-era highs, when bidding wars were common and homes regularly sold for over asking.
As reported in REMAX’s 2026 Canadian Housing Market Outlook, Canadian real estate markets are shifting to balance, with about 18% of markets predicted to favour sellers, and 15% expected to lean toward buyers. Prices will likely continue to moderate due to increased inventory in some markets. Conservative estimates are that homes will sell for about 3.5% less in 2026 than in 2025.
Affordability in Canadian Real Estate
Canadian real estate affordability doesn’t only depend on the cost of the house. It’s also about what’s affordable for each homeowner. Affordability has a subjective component, but lenders use hard data. In general, they recommend that you spend no more than 28% of your gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on all monthly debts (housing costs, car loans, credit card and line of credit minimum payments, student loans)
Although they don’t determine how much financing you would qualify for, you can use these guidelines as a general indication of what’s affordable for you right now.
The Most Affordable Cities in Canada
The most affordable places to buy a house are in the Prairie Provinces, Atlantic Canada, and Northern Ontario.
Here’s our list of the 10 most affordable cities, using a mortgage rate of 5%, a 25-year amortization, and provincial average weekly earnings data.
1. Medicine Hat, Alberta
Average home price: $247,000
20% Down payment: $49,400
Mortgage amount: $197,600
Monthly mortgage payment: $1,152
Average monthly income (Alberta): $5935
% of monthly income allocated to mortgage: 19.4%
2. Brandon, Manitoba
Average home price: $299,000
20% Down payment: $59,800
Mortgage amount: $239,200
Monthly mortgage payment: $1,395
Average monthly income (Manitoba): $5,935
% of monthly income allocated to mortgage: 27.1%
3. Sault Ste. Marie, Ontario
Average home price: $307,900
20% Down payment: $61,580
Mortgage amount: $246,320
Monthly mortgage payment: $1,437
Average monthly income (Ontario): $5,783
% of monthly income allocated to mortgage: 24.8%
4. Saint John, New Brunswick
Average home price: $308,300
20% Down payment: $61,660
Mortgage amount: $246,640
Monthly mortgage payment: $1, 438
Average monthly income (New Brunswick): $5,218
% of monthly income allocated to mortgage: 27.6%
5. Regina, Saskatchewan
Average home price: $311,291
20% Down payment: $62,258
Mortgage amount: $249,033
Monthly mortgage payment: $1,452
Average monthly income (Alberta): $5,522
% of monthly income allocated to mortgage: 26.3%
6. Trois-Rivières, Quebec
Average home price: $316,800
20% Down payment: $63,360
Mortgage amount: $253,440
Monthly mortgage payment: $1,478
Average monthly income (Quebec): $5,519
% of monthly income allocated to mortgage: 26.8%
7. Fredericton, New Brunswick
Average home price: $345,100
20% Down payment: $69,020
Mortgage amount: $276,080
Monthly mortgage payment: $1,610
Average monthly income (New Brunswick): $5,218
% of monthly income allocated to mortgage: 30.9%
8. Winnipeg, Manitoba
Average home price: $373,642
20% Down payment: $74,728
Mortgage amount: $298,914
Monthly mortgage payment: $1, 743
Average monthly income (Manitoba): $5,148
% of monthly income allocated to mortgage: 33.9%
9. Moncton, New Brunswick
Average home price: $375,504
20% Down payment: $75,101
Mortgage amount: $300,403
Monthly mortgage payment: $1,752
Average monthly income (New Brunswick): $5 218
% of monthly income allocated to mortgage: 33.6%
10. Thunder Bay, Ontario
Average home price: $386,184
20% Down payment: $77,237
Mortgage amount: $308,947
Monthly mortgage payment: $1, 802
Average monthly income (Alberta): $5,783
% of monthly income allocated to mortgage: 31.2%
Mortgage calculations based on 5% interest rate, 25-year amortization
Monthly incomes based on 2025 provincial average weekly earnings data
All dollar amounts in CAD
The Good News and the Bad News About Canadian Real Estate Affordability
The latest special housing report from RBC predicts that housing industry recovery and affordability will be uneven across the country.
Nationally, home resales declined by 3.5% in 2025, but RBC projects a 7.9% increase for 2026. Balanced supply-demand conditions will continue in the Prairies, Quebec, and parts of Atlantic Canada, where the most affordable places to buy a house are located. This means that these markets will remain stable and accessible for buyers interested in these markets.
In Ontario and B.C., the oversupply of condos is pulling average prices down, but real estate in general remains very expensive. While a condo listed at $1.2 million might sell for $1 million, properties aren’t more affordable in any real sense.
Regional Differences Matter
The affordability crisis in housing is real, but it’s not universal, and it is improving with moderating prices and lower interest rates. The cities listed above weren’t affected by the pandemic-era surge, and home prices never became as inflated as they did in Toronto and Vancouver. In these more expensive centres, prices have not declined to pre-pandemic levels, and are expected to remain elevated even as condo prices have dropped.
Looking outside the overheated markets in cities like Toronto and Vancouver can pay off for new homeowners. The opportunities to buy a home are there for those willing to explore new areas and build lives in the great communities that make up this vast and varied land.
