How much house can I afford on $80,000 a year?
On an $80,000 salary with no significant debts, you can typically afford a home in the $320,000 to $400,000 range in Canada.
| Scenario | Home Price | Down Payment | Mortgage Amount | Monthly Payment* |
|---|---|---|---|---|
| Minimum down (5%) | $340,000 | $17,000 | $323,000 + CMHC | ~$2,025 |
| 10% down | $365,000 | $36,500 | $328,500 + CMHC | ~$2,060 |
| 20% down | $395,000 | $79,000 | $316,000 | ~$1,975 |
*Estimated at 5% interest rate, 25-year amortization.
How lenders calculate your affordability
On an $80,000 salary:
| Your Income | Calculation |
|---|---|
| Monthly gross income | $6,667 |
| Maximum housing costs (39% GDS) | $2,600/month |
| Maximum total debt (44% TDS) | $2,933/month |
Your $2,600 housing budget must cover mortgage payment, property taxes (~$350/month), and heating (~$150/month), leaving roughly $2,100 for the mortgage payment itself.
Impact of existing debt
| Monthly Debt Payment | Mortgage Reduction | Home Price Impact |
|---|---|---|
| $400 car payment | ~$60,000 less | ~$63,000 less |
| $600 car + student | ~$90,000 less | ~$95,000 less |
Where can you buy on an $80K salary?
| City | Median Home Price | Affordable on $80K? |
|---|---|---|
| Regina | ~$325,000 | Yes |
| Saskatoon | ~$375,000 | Yes |
| Winnipeg | ~$350,000 | Yes |
| Edmonton | ~$400,000 | Yes |
| Calgary | ~$550,000 | Condo / townhouse |
| Halifax | ~$500,000 | Condo / stretch |
| Ottawa | ~$650,000 | Condo only |
| Montréal | ~$525,000 | Condo / small home |
| Toronto | ~$1,100,000 | No |
| Vancouver | ~$1,200,000 | No |
Sample budget: $80K salary buying a $350,000 home
| Category | Monthly |
|---|---|
| Gross income | $6,667 |
| Net income (after tax, Ontario) | ~$5,100 |
| Mortgage payment | $1,950 |
| Property tax | $350 |
| Utilities | $275 |
| Total housing | $2,575 |
| Remaining | $2,525 |
Housing would be about 50% of net income — manageable with disciplined budgeting.