What household income do I need to buy this home?
Enter the home price and your real numbers. We work backward from Canadian qualification rules.
Amounts are Canadian dollars. Change any number to update your answer.
Required below 20% down with 30 years. Check first-time buyer or new-build eligibility.
A 30-year insured amortization is only available to eligible first-time buyers or buyers of new builds.What your answer means
This is combined yearly household income before income tax. It estimates qualification, not your comfortable spending limit.
How the answer is calculated
We calculate the mortgage at the qualifying rate. If the down payment is below 20%, we add an estimated mortgage-default-insurance premium to the mortgage. Then we apply published 39% GDS and 44% TDS limits.
Current qualification rule
The qualifying rate is generally the greater of your contract rate plus two percentage points or 5.25%.
Official sources
Example: income needed for a $700,000 home
With $140,000 down, a 4.49% rate and 25 years to repay, the base mortgage is $560,000. Add $4,500 yearly property tax, $150 monthly heating and $500 monthly debt payments.
The mortgage stress test uses 6.49%, producing a qualifying payment of about $3,748 monthly. The estimated household income needed is $131,465 before tax. The actual mortgage payment at 4.49% is about $3,096 monthly.
The higher payment determines this qualification estimate. Approval and a comfortable budget are separate questions.