Here are the cheapest cities in Ontario to buy a home in 2026

Right now could be a great time to purchase a property if you're looking to fulfill your dreams of homeownership, as the Canadian real estate market has cooled off from pandemic-era highs, especially outside of overheated centres like Toronto.

According to REMAX's 2026 Canadian Housing Market Outlook, many real estate markets across the country are continuing to shift in favour of buyers (15 per cent), while 18 per cent are predicted to favour sellers.

Still, the average home is projected to sell for 3.5 per cent less this year than in 2025, with some of the most affordable conditions concentrated in northern Ontario.

Using a mortgage rate of five per cent, provincial average weekly earnings data, and a 25-year amortization, REMAX found that Sault Ste. Marie is the third most affordable city in Canada to purchase a home right now, with an average home price of $307,900.

Based on a 20 per cent down payment, the mortgage amount comes out to $246,320, meaning the monthly mortgage payment of $1,437 is manageable for the average household earning $5,783 per month.

Thunder Bay also appeared on the list at #10, with an average home price of $386,184. Assuming a monthly income of $5,783, the average household would have to allocate 31.2 per cent of their monthly income for the mortgage payment.

Overall, the outlook notes that prices in Ontario will continue to stay "very expensive," adding that "while a condo listed at $1.2 million might sell for $1 million," properties aren't necessarily getting more affordable.

"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," the study reads.

"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."

These are the 10 most affordable cities to buy a home in Canada right now, according to the study:

1. Medicine Hat, Alberta — average home price of $247,000
2. Brandon, Manitoba — average home price of $299,000
3. Sault Ste. Marie, Ontario — average home price of $307,900
4. Saint John, New Brunswick — average home price of $308,300
5. Regina, Saskatchewan — average home price of $311,291
6. Trois-Rivières, Quebec — average home price of $316,800
7. Fredericton, New Brunswick — average home price of $345,100
8. Winnipeg, Manitoba — average home price of $373,642
9. Moncton, New Brunswick — average home price of $375,504
10. Thunder Bay, Ontario — average home price of $386,184