Mortgage affordability continues to be a hot topic across Canada. While home prices have suffered a slight dip in the last month, mortgage payments continue to escalate as the Bank of Canada tackles inflation in pursuit of its 2% target.
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The contrast in high home prices and mortgage payments compared to the more affordable prices is stark. In Ontario in particular, there is a huge divide between the Greater Toronto Area and some of the more suburban cities in the province. To learn how great the difference is, we analyzed the average home prices from five of the most affordable and expensive cities in Ontario and calculated how much homebuyers in these cities can expect to shell out in monthly mortgage payments based on the average price.
$1,600,000 Gap Between Most Affordable and Expensive Markets in Ontario
The most noticeable difference is how expensive cities around Toronto and the Golden Horseshoe area are compared to outer areas. King is the most expensive city we covered, with the average home price currently $1,927,333, nearly $1,600,000 more expensive than the most affordable city on our list, Sault Ste. Marie. The average monthly mortgage payment sits at $9,003, nearly $7,000 higher than Sault Ste. Marie. King however is also nearly $400,000 higher than the next most expensive city on our list, Oakville, with a low number of sales and mainly luxury properties selling in the area contributing to the extremely high average price.
Regardless, the gap is still clear when comparing the least affordable of the five affordable cities and the least expensive of the most expensive cities. Windsor-Essex, which ranked fifth on our most affordable list, has an average home price of $554,277, nearly $900,000 less than the average price of a home in Richmond Hill. That’s a difference of nearly $3,500 on the monthly mortgage payments between the two.
However, there are clearly pockets of affordability to be found across the province, despite how daunting it may seem. Canada’s average home price according to the Canadian Real Estate Association was $668,249 in July, with our five most affordable cities all ranking beneath that mark. Sault Ste. Marie is the most affordable city, where the average home costs $348,889, with monthly mortgage payments of $2,013. Thunder Bay is another region where you can find homes for less than $400,000, with the average price at $375,059 and monthly mortgage payment of $2,164.
Whether you’re looking for a home in an affordable Ontario market or a major city we’re here to help. Our expert agents can help you find the perfect home regardless of your budget.
