Alberta spot named the most affordable city to buy a house in Canada

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These three major Alberta cities are the most in-demand to buy a house in

The real estate organization added that Canadian real estate affordability doesn’t depend only on the cost of the house; it’s also about what’s affordable for each homeowner.

In general, lenders recommend that you spend no more than 28 per cent of your gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36 per cent on all monthly debts (housing costs, car loans, credit card and line of credit minimum payments, student loans).

Using a mortgage rate of five per cent, a 25-year amortization, and provincial average weekly earnings data, the city of Medicine Hat landed in first place and was the only Alberta city to make the cut.

According to the report, the average home price in Medicine Hat came in at $247,000, with a 20 per cent down payment running potential homebuyers $49,400.

The mortgage amount landed at $197,600, and the monthly mortgage payment came to $1,152.

The average monthly income in Alberta worked out to $5,935, with 19.4 per cent of the monthly income allocated to a mortgage.

People seem to have gotten wind of the perks of Medicine Hat, with the city recently seeing a nearly 50 per cent rise in house sales.

Last September, the city was also named a top place to live in Canada for a comfortable life, landing within the top five.

You can view the full Re/Max report online.

Would you buy a house in Medicine Hat? Let us know in the comments.