The Canadian housing market is relatively healthy compared to the rest of the world. According to CREA (The Canadian Real Estate Association), the average house price in Canada is $365,000, which has improved almost nine percent from where it was 12 months ago. The province of Alberta has a stable housing market, thanks in part to their strong economy due to the oil sands industry.
The average price for a home in the province of Alberta is $352,000, which is slightly below the national average1. We’ll breakdown what a monthly mortgage would look like in for the price of an average Alberta home using current Alberta mortgage rates.
For our scenarios, we selected from the lowest mortgage rates in Alberta and opted for a 5-year fixed mortgage at 3.51%*, over a 25-year amortization period with a 20% down payment.
The monthly payments work out to $1,440. And since the Alberta Land Transfer Tax is so small, the fee due is only $107.
What kind of home you can get in…
Alberta’s most affordable city: Brooks2
MLS®: 347814, 5 bedrooms, 2 bathrooms
This home is ideal for the family in need of space. It boasts five bedrooms, an open concept great room, two-car garage, and a bbq deck. The city of Brooks is about 190km away from Calgary and comprises a population of 12,000 people.
Alberta’s most expensive city: Canmore2
MLS®: 23922 , 3 bedrooms, 2 bathrooms
This 1,000 square foot apartment-style condo has picturesque views of the mountains. The unit is on the top floor facing south, complete with a nook for a washer/dryer and two tandem parking stalls. It’s a cozy property with breathtaking views that will greet you every morning.
The difference between the most affordable and expensive Albertan cities is surprising, because both cities share the same population size and are relatively 1-2 hours away from Calgary. On one hand, you’re able to acquire a five-bedroom home, and on the other, a two-bedroom condo. What might help tip the scale in favour of Canmore are the mountain and lake views from the city.
* As of July 15, 2011
1 According to the 2011 CREA report http://www.livingin-canada.com/house-prices-canada.html
2 City affordability as determined by Moneysense: http://list.moneysense.ca/rankings/best-places-to-live/2011/Default.aspx?sc1=4&d1=a&sp2=1&eh=ch