Income needed by home price
| Price | Down payment | Fixed, 25 yrs | Variable, 25 yrs | 20% down, fixed | Fixed + $500/mo debt |
|---|---|---|---|---|---|
| $300,000 | $15,000 | $74,000 | $69,000 | $62,000 | $80,000 |
| $400,000 | $20,000 | $98,000 | $91,000 | $82,000 | $101,000 |
| $500,000 | $25,000 | $122,000 | $113,000 | $102,000 | $122,000 |
| $600,000 | $35,000 | $144,000 | $134,000 | $121,000 | $144,000 |
| $700,000 | $45,000 | $167,000 | $155,000 | $141,000 | $167,000 |
| $800,000 | $55,000 | $190,000 | $175,000 | $161,000 | $190,000 |
| $900,000 | $65,000 | $212,000 | $196,000 | $181,000 | $212,000 |
| $1,000,000 | $75,000 | $235,000 | $217,000 | $200,000 | $235,000 |
| $1,200,000 | $95,000 | $280,000 | $259,000 | $240,000 | $280,000 |
| $1,300,000 | $105,000 | $303,000 | $280,000 | $259,000 | $303,000 |
| $1,500,000 | $300,000 | $299,000 | $277,000 | $299,000 | $299,000 |
Minimum down (20% at $1.5M). Property tax 1% of price/year, heating $100/month, GDS 39% / TDS 44%. Rates 4.94% fixed and 3.95% variable, 2 November 2026.
How lenders work it out
There is no fixed “income multiple” in Canada. Instead lenders compute the payment at the qualifying rate (6.94% for a 4.94% fixed), add property tax, heating and half of any condo fees, and require that total to be no more than 39% of gross income (GDS). All debts together must stay under 44% (TDS). As a rough guide at today’s rates, the maximum mortgage is about 4.7× gross income before property tax — less once tax and heating are included.
What lowers the income you need
- A variable rate qualifies at 5.95% instead of 6.94%.
- A 30-year amortization (first-time buyers, new builds, or 20% down).
- A bigger down payment — smaller loan and no CMHC premium at 20%.
- Clearing car loans and credit card balances before applying.
- Lower property taxes — they vary widely between municipalities.
What it feels like on take-home pay
At $159,000 a single Ontario earner takes home about $9,130 a month in 2026, and the real payment on the average home ($3,758) is 41% of that before property tax, utilities and insurance. See the $160,000 salary after tax page for the full breakdown.
FAQ
How much income do I need to buy a house in Canada?
For the $666,538 national average home (CREA, September 2026) with the minimum down payment, about $159,000 of household income at a 4.94% fixed rate, assuming no other debts.
How much house can I afford on $100,000 a year in Canada?
With no other debts, a 5-year fixed at 4.94% and the stress test, roughly a mortgage of $392,000, assuming $5,000 of annual property tax.
What is the GDS ratio for a mortgage in Canada?
Gross debt service is housing costs (stress-tested mortgage payment, property tax, heating and half of condo fees) divided by gross income. CMHC allows up to 39%.
Does a variable rate let me borrow more?
Yes, because the qualifying rate is the contract rate + 2: 5.95% for a 3.95% variable versus 6.94% for a 4.94% fixed.
Related mortgage articles
Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).