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How Much House Can I Afford on a $175,000 Salary in Canada?

Updated

How much house can you afford on a $175,000 salary?

With a $175,000 salary, you can typically afford a home worth $700,000 to $875,000 in Canada.

Scenario Down Payment Max Home Price
Minimum $43,000 ~$780,000
15% down $125,000 ~$835,000
20% down $175,000 ~$875,000

Note: Minimum down on $780K = 5% of first $500K ($25K) + 10% of remaining $280K ($28K) = $53,000

Monthly budget at $175,000 income

Expense Amount
Gross monthly income $14,583
Max housing costs (39% GDS) $5,688
Typical mortgage payment ~$4,600
Property tax ~$700
Heating ~$225

How existing debt affects affordability

Monthly Debt Max Home Price
$0 ~$800,000
$500 (car loan) ~$720,000
$800 (car + credit) ~$670,000
$1,200 ~$600,000

Cities where $175K salary buys a home

City Median Home Price Can You Afford?
Edmonton ~$400,000 Premium home
Calgary ~$550,000 Very nice detached
Ottawa ~$650,000 Good detached
Hamilton ~$750,000 Average detached
Toronto ~$1,100,000 Townhouse / condo
Vancouver ~$1,200,000 Condo or townhouse

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