How much house can you afford on a $120,000 salary?
With a $120,000 salary, you can typically afford a home worth $480,000 to $600,000 in Canada.
| Scenario | Down Payment | Max Home Price |
|---|---|---|
| Minimum | $29,500 | ~$540,000 |
| 10% down | $55,000 | ~$550,000 |
| 20% down | $120,000 | ~$600,000 |
Note: Minimum down payment on $540K = 5% of first $500K + 10% of remaining $40K = $29,000
Monthly budget at $120,000 income
| Expense | Amount |
|---|---|
| Gross monthly income | $10,000 |
| Max housing costs (39% GDS) | $3,900 |
| Typical mortgage payment | ~$3,200 |
| Property tax | ~$475 |
| Heating | ~$200 |
How existing debt affects affordability
| Monthly Debt | Max Home Price |
|---|---|
| $0 | ~$550,000 |
| $400 (car loan) | ~$485,000 |
| $700 (car + credit) | ~$430,000 |
| $1,000 | ~$380,000 |
Cities where $120K salary buys a home
| City | Median Home Price | Can You Afford? |
|---|---|---|
| Edmonton | ~$400,000 | Nice detached home |
| Calgary | ~$550,000 | Average detached |
| Ottawa | ~$650,000 | Townhouse / smaller home |
| Hamilton | ~$750,000 | Condo / townhouse |
| Toronto | ~$1,100,000 | Good condo |
| Vancouver | ~$1,200,000 | Condo |