How much house can I afford based on my salary?

A common rule of thumb is that you can afford a home priced at 3–4.5 times your annual salary. On a $70,000 salary, that means roughly $210,000 to $315,000. However, Canadian lenders use stricter calculations — your housing costs must stay below 39% of gross income (GDS ratio), and you must qualify at the stress test rate. See our salary-specific guides for detailed breakdowns.

What salary do you need to buy a house in Canada?

To buy the median-priced home in Canada (~$670,000), you would need a household income of roughly $140,000–$175,000, depending on your down payment and debts. In expensive cities like Toronto or Vancouver, you would need $200,000+ to buy the typical home. In affordable cities like Winnipeg or Regina, $60,000–$80,000 can get you into the market.

How do Canadian banks calculate mortgage affordability?

Canadian banks use two ratios: GDS (Gross Debt Service) limits housing costs to 39% of gross income, and TDS (Total Debt Service) limits all debt payments to 44%. They also apply a stress test — qualifying you at the higher of your contract rate + 2% or 5.25% — to ensure you can handle rate increases.

How Much House Can I Afford in Canada? | By Salary

How much house can I afford?

Use the guides below to find detailed mortgage affordability breakdowns for your salary level. Each page includes maximum home prices, monthly payment estimates, down payment scenarios, and city-by-city affordability comparisons.

Affordability by salary

Annual Salary	Estimated Home Price Range	Guide
$40,000	$160,000 – $200,000	View guide →
$50,000	$200,000 – $250,000	View guide →
$60,000	$240,000 – $300,000	View guide →
$70,000	$280,000 – $350,000	View guide →
$75,000	$300,000 – $375,000	View guide →
$80,000	$320,000 – $400,000	View guide →
$90,000	$360,000 – $450,000	View guide →
$100,000	$400,000 – $500,000	View guide →
$120,000	$480,000 – $600,000	View guide →
$150,000	$600,000 – $750,000	View guide →
$175,000	$700,000 – $875,000	View guide →
$200,000	$800,000 – $1,000,000	View guide →
$250,000	$1,000,000 – $1,250,000	View guide →

Ranges assume minimal existing debt, good credit, and are based on Canadian lender stress test rules.

Quick affordability formula

As a rough starting point, most Canadians can afford a home priced at 3.5 to 4.5 times their gross annual income:

Salary	Conservative (3.5x)	Moderate (4x)	Stretch (4.5x)
$70,000	$245,000	$280,000	$315,000
$100,000	$350,000	$400,000	$450,000
$150,000	$525,000	$600,000	$675,000

However, actual affordability depends on:

Your down payment amount
Existing debts (car loans, student loans, credit cards)
Current mortgage interest rates
Property taxes in your area
Whether you’re buying a condo (add condo fees to your costs)

How lenders calculate your maximum mortgage

Canadian lenders use two key ratios:

GDS Ratio (max 39%)

Housing costs ÷ Gross income ≤ 39%

Housing costs include:

Mortgage payment (principal + interest)
Property taxes
Heating
50% of condo fees

TDS Ratio (max 44%)

All debt payments ÷ Gross income ≤ 44%

Includes housing costs plus:

Car loans
Student loans
Credit card minimums
Lines of credit

The Stress Test

You must qualify at the higher of your contract rate + 2%, or 5.25%. This reduces your maximum mortgage by roughly 20% compared to qualifying at actual rates.

Coming at this from a home price?

If you have a target home price in mind and want to know the income required, see our Income Needed to Buy a House guides — starting with the $300K home guide.

Calculate your exact affordability

For a personalized calculation based on your specific income, debts, and down payment, use our mortgage affordability calculator.

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