As Toronto and Vancouver real-estate prices hit record values, prospective homeowners may want to expand their search for the best deals in Canadian real-estate.

The latest edition of MoneySense magazine, which looked at top 35 cities in Canada to buy real estate, suggests looking north would be the place to start.

Thunder Bay gets top marks for best deals in the real-estate market, “based on housing value, price momentum, economic strength and rental income potential.”

The average household income is just over $78,000, and the average price for a home is just under $209,000

“It’s a city that’s actually thriving. Ten years ago it opened the Northern Ontario School of Medicine, and that’s really driven a lot of students to that city,” Romana King, the magazine’s senior editor said.

“It’s also driven a lot of professionals because people are studying in a city, they start to love the city and they’ll end up staying in a city.”

A little closer to the Greater Toronto Area, Barrie ranks third on the MoneySense list.

“The average household income for a Barrie resident is just over $92,000. Particularly when you look at Toronto, it’s just under $105,000, and housing prices are quite significantly cheaper,” King said.

Brantford, Hamilton, Guelph and Durham/Oshawa are also in the Canadian top 10 for real-estate value. Toronto came in 12th spot.

Canada’s top 10 cities include:

Thunder Bay Calgary Barrie Brantford Edmonton Winnipeg Hamilton Regina Guelph Durham/Oshawa

MoneySense also ranked each neighbourhood for value in Toronto, Vancouver, Calgary, and Montreal.

Toronto’s top neighbourhoods include:

Pleasant View East End-Danforth Regent Park Hillcrest Village Milliken Mills West

Click here to read the full story and rankings in MoneySense magazine.