Where to buy a house in Canada?
Despite recent efforts to control Canadian real estate markets, the fact remains that housing prices are still unaffordable. Add this to the high inflation rate, sustaining life in some Canadian cities has been really hard. While this is particularly true in major markets such as Toronto and Vancouver, as well as their suburbs, there’s still affordable housing to be found in Canada. Most residents are willing to relocate to be able to buy a house in Canada.
According to the RE/MAX Canada report, 64 per cent of Canadians said they are willing to move in order to buy an affordable home. However, half of them are willing to only move 100 kilometers or less from their current location. Meanwhile, 38 per cent said they would move to a different city, province, or region.
Cheapest cities to buy a house in 2022
Here are 10 places where you can carry the mortgage of a home, for less than 40 per cent of the average income. These statistics are valid for January 1 – June 30, 2022.
|City||Average Home Price||Down Payment||Monthly Mortgage Payment|
|Red Deer, Alberta||$356,779.00||$71,355.80||$1,716.00|
|Thunder Bay, Ontario||$370,761.00||$74,152.20||$1,783.00|
|St. John’s, Newfoundland||$332,900.00||$66,580.00||$1,601.00|
Mortgage rate forecast in Canada 2023
The Central Bank of Canada is determined to fight inflation. Eventually, the Central Banks will begin lowering rates again to stimulate the economy and pull us out of the recession. This means lower mortgage interest rates. More specifically, once the Central Bank reaches its peak rate, it takes on average 6 months for it to start lowering rates again. Taking a more careful and conservative projection, it could be between November 2023 and January 2024 before the first Bank of Canada rate drop.
However, if the economy slows harder and faster than expected, we could see the Central Bank lower rates sooner in 2023. Rates will not normalize at the lowest levels seen during covid. However, as fixed mortgage rates approach a highly restrictive 5.5 – 6% range, the expectation is that rate normalization may occur into the low to mid ‘neutral rate’ range, or in the low 3% range for mortgage rates.
Read more: Best Canadian cities among the top 100
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