How much income do I need to buy a house in Canada?

The income needed depends on the home price. For a $300,000 home, you need roughly $55,000–$70,000. For a $600,000 home, you need $110,000–$140,000. For a $1 million home, you need $180,000–$225,000. These ranges vary based on your down payment, debts, and local property taxes.

What salary do I need to buy a $500,000 house?

To buy a $500,000 home in Canada with 10% down, you typically need a household income of approximately $100,000–$115,000. With 20% down, you can qualify with around $90,000–$100,000. Add roughly $10,000 to these figures for every $300/month in existing debt payments.

Can I afford a million dollar house?

To afford a $1 million home in Canada, you typically need a household income of $180,000 to $225,000, depending on your down payment. You must also have at least $75,000 down (the minimum for homes over $500K is 5% on the first $500K plus 10% on the remainder). Most million-dollar home buyers have 20% down ($200,000) and incomes above $200,000.

Income Needed to Buy a House in Canada | By Home Price

Income needed to buy a house in Canada

How much do you need to earn to buy a home at different price points? Use the guides below to find detailed income requirements, monthly payment breakdowns, and down payment scenarios for your target home price.

Income requirements by home price

Home Price	Income Needed (5-10% down)	Income Needed (20% down)	Guide
$300,000	$65,000 – $70,000	$55,000 – $60,000	View guide →
$400,000	$85,000 – $95,000	$70,000 – $80,000	View guide →
$450,000	$95,000 – $105,000	$80,000 – $90,000	View guide →
$500,000	$105,000 – $115,000	$90,000 – $100,000	View guide →
$600,000	$125,000 – $140,000	$105,000 – $120,000	View guide →
$700,000	$145,000 – $160,000	$125,000 – $140,000	View guide →
$750,000	$160,000 – $180,000	$140,000 – $155,000	View guide →
$800,000	$165,000 – $185,000	$140,000 – $160,000	View guide →
$900,000	$195,000 – $215,000	$170,000 – $185,000	View guide →
$1,000,000	N/A (20% required)	$190,000 – $225,000	View guide →
$1,500,000	N/A (20% required)	$275,000 – $325,000	View guide →
$2,000,000	N/A (20% required)	$370,000 – $435,000	View guide →

Assumes minimal existing debt and typical property tax rates. Homes over $1M require 20% minimum down payment.

Quick income formula

A rough estimate: you need an income of roughly 4 to 5 times less than the home price to qualify.

Home Price	÷ 4.5	÷ 5
$300,000	$67,000	$60,000
$500,000	$111,000	$100,000
$750,000	$167,000	$150,000
$1,000,000	$222,000	$200,000

The actual income you need depends on:

Down payment — More down = less mortgage = lower income needed
Existing debts — Car loans, student loans reduce borrowing power
Interest rates — Higher rates mean higher payments
Property taxes — Vary significantly by municipality
Stress test — You must qualify at contract rate + 2%

How lenders calculate required income

Canadian lenders work backwards from your housing costs:

Calculate total housing cost (mortgage payment + property tax + heat + 50% of condo fees)
Divide by 0.39 (the GDS limit) to get minimum gross monthly income
Multiply by 12 for annual income

Example: $500,000 home with 10% down

Item	Amount
Mortgage ($450K + CMHC at 5%)	$2,630/month
Property tax	$400/month
Heating	$150/month
Total housing cost	$3,180/month
÷ 0.39 = Monthly income needed	$8,154
× 12 = Annual income	$97,846

Minimum down payment rules in Canada

Home Price	Minimum Down Payment
Up to $500,000	5%
$500,001 – $999,999	5% on first $500K + 10% on remainder
$1,000,000+	20%

Example: For a $750,000 home, minimum down = $25,000 (5% of $500K) + $25,000 (10% of $250K) = $50,000

Coming at this from the other direction? See our salary-based guides:

How Much House on $50K Salary
How Much House on $70K Salary
How Much House on $100K Salary
How Much House on $150K Salary
How Much House Can I Afford? — all salary levels

Calculate your exact requirements

Use our mortgage affordability calculator for a personalized calculation based on your specific situation.