How to find an affordable house in Canada
Finding an affordable house within your budget is all about knowing what to look for and where to look. The average price of a house in Canada was $716,000 in April 2023. That’s an intimidating number for most people, but it’s still possible to find an affordable property in Canada.
What should I remember when I’m looking for an affordable house?
Before you start looking for an affordable home, establish your must-have features. Maybe some things are negotiable — you want a yard but you’d settle for a nearby park — while others are essential. Make a budget with your financial advisor before you start looking, and use your mortgage pre-approval and your own financial limits to stay focused on what you can afford.
Ask why you’re getting a deal
Before you get excited about an affordable property, understand why the home is listed at a lower price than other homes in the area. Choose a real estate professional who can help you navigate the fine print and get as many details as you can. There’s almost always a reason for a low price beyond pure luck.
Consider the accessibility, safety, neighbourhood, renovation needs and time on the market for the property. Some reasons are an easy fix: outdated wallpaper or cosmetic issues might lower the cost of a home but they can be affordable fixes and offer an easy way to add value if you sell in a few years. Foundational and structural issues commont in older or badly constructed homes are a different story. Look for homes with good bones.
Some provinces have regions with lower home prices, which makes them an appealing buy.
Consider the resale value and balance the risk of an investment in a less sought-after area, especially if you’re planning to sell in the foreseeable future. Ask your real estate professional to outline recent price drops, a falling trend can point to a tough seller’s market for anyone hoping to up the value of their home with some quality renovations.
What provinces in Canada have the most affordable real estate?
Manitoba, Newfoundland and Labrador, Alberta and New Brunswick had the lowest overall average home prices in 2022. Most provinces have a mix of pricey and low-cost homes available. If you’re consistently outbid or often find homes that are out of your budget, try expanding your search to a new neighbourhood or a location a little farther away and consider if it’s worth changing plans for a more affordable place or a bigger property.
According to the Canadian Real Estate Association’s 2022 report, the most affordable places to buy a home in Canada were:
- Alberta: In Lloydminster, the average home price was $271,688, and many Albertan townships offer affordable homes to purchase. Calgary is the exception, with average home prices over $500,000.
- Northern British Columbia: If you’ve been searching for a home in Victoria or Vancouver, you know B.C. real estate can be costlier than almost anywhere else in Canada. But in northern regions like Smithers and Fort Nelson in the Northern Rockies, home prices were $410,916.
- Quebec: In Saguenay, Quebec, home prices were around $250,000, making this an appealing area with rich history and natural beauty. Saguenay is the most Francophone district of Quebec, so you might have complications living here if you’re not fluent in French.
- New Brunswick: You’ll find some of the most affordable home prices in Canada here, with homes available under $200,000 and a province average under $300,000. This is an area to watch; home prices didn’t drop in 2022 so it could be a smart place to invest.
- Saskatchewan: Regions like the Battlefords offered average home prices of around $200,000 and saw a recent dip in home prices.
- Manitoba: If you’re looking for an affordable home outside of Winnipeg, you might find an affordable house in towns like Portage la Prairie. But property values have fallen here over the past year, making it a less sound investment. In more developed areas like Brandon, you can still find properties around $310,000.
- Newfoundland: Overall, real estate here is most affordable along the coastline and smaller townships.
- Nova Scotia: This whole province offers more affordable homes than most other provinces, and Nova Scotia is gaining popularity for its coastlines and rugged beauty. In Cape Breton average home prices were under $200,000.
- Ontario: Rural districts like Timmins and Cochrane had homes around $225,0000 –– some of the most affordable in the province.
Where can I find home values in Canada?
Houseful offers comprehensive tools for understanding home values. In addition, the Canadian Real Estate Association releases extensive yearly reports on average home prices. Home values can change dramatically in just a few months, so make sure you’re checking out recent listings to get the full picture. Your real estate professional can also help you get a clear sense of home values in your ideal market.
Tips for finding an affordable house
- Consider whether a fixer-upper or a move-in-ready house is right for you. If you find a house that needs some simple renovations at a far lower price tag, it might be worth considering a place that needs more work.
- Leave room for surprise costs and closing costs, putting aside 2-5% of your total loan cost for closing costs, in addition to any renovations you’re anticipating.
- Look into Canadian homebuying incentives if you’re a first-time buyer.
- Use Houseful for real-time insights, expert guidance and a concierge team that’s available at every step.
- Make a smart offer: Choose a real estate professional who understands the local market. Some provinces have seen significant price drops over the last quarter. Knowing whether you’re in a buyer’s or seller’s market can help you make a smart offer.
- Use our homebuying checklist to get organized.
Houseful provides personalized guidance for your real estate journey. If you’re a first-time homebuyer, our dedicated team of experts offers support from initial planning through to moving day. Work with top-rated, local real estate agents and gain access to financial insights and advice from RBC Home Advisors.
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