10 Canadian Cities With Mortgage Payments Under $3,000
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Has the Canadian housing market been a topic of concern for you due to the rising costs of living? Do you feel like it’s almost an impossible wish to enter the market? Some good news: There are still cities in Canada where mortgage payments remain affordable, allowing you to own a home without breaking the bank.
In this post, we will explore the cities with low mortgage payments, providing options for those looking for more affordable housing solutions.
- Despite the overall increase in housing costs in Canada, there are 10 cities where mortgage payments remain low, offering an affordable alternative to renting.
- Rising home prices and interest rates have contributed to increasingly higher mortgage payments.
- The cities with the lowest mortgage payments in Canada are often outside Ontario and British Columbia. However, you can still find affordable housing in these provinces.
Are you a first-time buyer?
Why Monthly Mortgage Payments are Increasing in Canada
There are many reasons why mortgage payments in Canada are on the rise.
One of the main factors is the increase in home prices. Population growth and the increased demand for housing have led to a surge in home prices. Housing costs for homeowners and renters remain high, especially in Ontario and British Columbia’s largest urban cities.
Another contributing factor is the recent increase in interest rates. As interest rates climb, mortgage rates follow suit, resulting in higher mortgage payments for homeowners. Higher interest rates can make it more challenging to enter the housing market due to stress testing requirements and home affordability challenges.
Is It Still Possible to Own a Home in Canada?
Despite the challenges posed by increasing home prices and rising mortgage interest rates, owning a home in Canada is still possible. You can find cities across Canada with lower mortgage payments, making homeownership more attainable.
In a RE/MAX report on housing affordability, 64% of Canadians would relocate to achieve housing affordability. 38% even said they would move to a different city/province/region regardless of distance
Cities in Canada with Mortgage Payments Under $3,000
There are many cities in Canada to explore that offer a lower cost of living. To assist you in your search for affordable housing, we have compiled a list of cities where mortgage payments are under $3,000. These cities allow you to own a home without stretching your budget too thin.
Cape Breton Island, Nova Scotia
Cape Breton Island was ranked the #1 island in North America by Condé Nast Traveler readers. While this location on our list is not a city, the island has affordable real estate with home prices significantly lower than the rest of Canada.
Homes in Sydney, the largest urban area on the island, come in around the mid $300,000s. Meanwhile, you can find homes as low as the mid $100,000s elsewhere on the island. With the 298km Cabot Trail, Cape Breton is perfect for the outdoor adventurer.
Population: Approx. 98,808
Average home price: $206,600
Average monthly mortgage payment: $1,245
Average home price savings compared to Halifax: $1,898/month on your mortgage
Property tax rate: 1.4% – 2.2% depending on area and services.
Brandon has become a popular location for first-time buyers and young families and is considered one of the top places to live in Canada. Located roughly 2.5 hours from Winnipeg, this small city provides both the perks of small city living while being close enough to the big city to take a day trip for larger events.
Population: Approx. 51,313
Average home price: $265,690
Average monthly mortgage payment: $1,601
Average home price savings compared to Winnipeg: $464/month on your mortgage
Property tax rate: 2.93%
Saint John, New Brunswick
Saint John, the oldest incorporated city in Canada, is located on the Bay of Fundy. The city offers arts and culture, diversity, safe neighbourhoods, and many new businesses. Many family-friendly activities exist, including live music, theatre, and sporting events. The area also has many parks, trails, beaches, and playgrounds.
Population: Approx. 70,785
Average home price: $297,400
Average monthly mortgage payment: $1,792
Average home price savings compared to Moncton: $261/month on your mortgage
Property tax rate: 1.71%
Regina is the second largest city in Saskatchewan and is one of Canada’s fastest-growing major cities. The city offers inexpensive public transit options and plenty of family-friendly activities. With many parks, arts, and cultural events, there is something for the whole family.
Population: Approx. 228,928
Average home price: $308,700
Average monthly mortgage payment: $1,860
Average home price savings compared to Saskatoon: $441/month on your mortgage
Property tax rate: 1.46%
Trois-Rivières has a thriving downtown district with a variety of bars and restaurants as well as family-friendly music festivals, art exhibits, and workshops. The area is ideally positioned if you love the outdoors. Located halfway between Montreal and Quebec City, Trois-Rivières is less than a 2-hour drive from either city, making it easy to take quick day trips to larger urban areas.
Population: Approx. 137,188
Average home price: $353,062
Average monthly mortgage payment: $2,127
Average home price savings compared to Montreal: $992/month on your mortgage
Property tax rate: 1.35%
Edmonton is a diverse city nicknamed Canada’s festival city, hosting festivals year-round. There’s no shortage of things to do that the whole family will enjoy. The city is also home to the West Edmonton Mall, the largest shopping mall in North America that boasts many family-friendly attractions like a waterpark and underground aquarium.
Population: Approx. 981,280
Average home price: $373,400
Average monthly mortgage payment: $2,250
Average home price savings compared to Calgary: $1,066/month on your mortgage
Property tax rate: 0.94%
North Bay offers abundant green space for outdoor activities and low-density living with the benefits of full urban services. This small community is the place to live if you love the outdoors but want big-city amenities.
Population: Approx. 51,553
Average home price: $394,100
Average monthly mortgage payment: $2,374
Average home price savings compared to Ottawa: $1,458/month on your mortgage
Property tax rate: 1.51%
Cornwall is located on the border of Canada and the United States, as well as near the border of Quebec. In 2021, Maclean’s listed Cornwall as number 8 on its “Best Communities in Canada” list. Cornwall is a great full-service city for families that retains its small-town feel.
Population: Approx. 46,589
Average home price: $423,456
Average monthly mortgage payment: $2,551
Average home price savings compared to Ottawa: $1,281/month on your mortgage
Property tax rate: 1.77%
Gatineau is an ideally located city situated next to Ottawa. Gatineau Park, the National Capital Region’s conservation park, is a destination for those who love the outdoors. There is plenty to do for all ages. The city offers an abundance of nightlife and dining options, festivals, art exhibits, and events, making it the perfect mix for those who love nature but don’t want to compromise on city living.
Population: Approx. 284,557
Average home price: $454,171
Average monthly mortgage payment: $2,736
Average home price savings compared to Montreal: $383/month on your mortgage
Property tax rate: 0.95%
Bancroft, located in the heart of the Canadian Shield, is a small town with all the convenience of urban living. Over the past 10 years, many urban professionals have transitioned from city living to a more relaxing country life in Bancroft. The area is home to the world’s largest mineral collection, making it an ideal place for rockhounds and outdoor enthusiasts.
Population: Approx. 3,881
Average home price: $472,700
Average monthly mortgage payment: $2,848
Average home price savings compared to Ottawa: $984/month on your mortgage
Property tax rate: 1.77%
Frequently Asked Questions
Welcome to our Frequently Asked Questions (FAQ) section, where we answer the most popular questions designed and crafted by our in-house mortgage experts to help you make informed mortgage financing decisions.
What city in Canada offers the most affordable homes?
Saint John, New Brunswick, is Canada’s most affordable city to own a home. The average home price is roughly $10,000 lower than the next most affordable city, Regina, Saskatchewan.
What is a typical mortgage payment in Canada?
In the second quarter of 2023, CMHC reported the average monthly mortgage payment for a new mortgage loan was $1,922 in Canada. In major cities like Vancouver, with a high cost of living, this number jumps to $2,992.
How many Canadians own their home with no mortgage?
According to the Financial Consumer Agency of Canada (FCAC), 23.3% of Canadian homeowners own homes without mortgages.
Affordable housing options are still available in Canada despite the rising costs of homeownership. By exploring cities with low mortgage payments and affordable neighbourhoods, you can find a place to call your own without compromising your financial well-being.
Homeownership offers stability and the potential for equity growth, making it a valuable investment in the long run. Whether you rent or own, finding a housing solution that aligns with your financial situation and lifestyle is key.
Are you ready to embark on your homeownership journey? Contact our experienced mortgage experts, who can help guide you through the process.
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