Income needed to afford a $1,000,000 home
To buy a $1,000,000 home in Canada, you typically need a household income of $190,000 to $225,000 per year.
Important: Homes priced at $1 million or more require at least 20% down payment. CMHC mortgage insurance is not available above this threshold.
| Down Payment | Mortgage Amount | Income Needed | Monthly Payment |
|---|---|---|---|
| 20% ($200,000) | $800,000 | ~$192,000 | ~$5,000 |
| 25% ($250,000) | $750,000 | ~$180,000 | ~$4,700 |
| 30% ($300,000) | $700,000 | ~$168,000 | ~$4,375 |
Monthly housing costs breakdown
| Expense | 20% Down | 25% Down |
|---|---|---|
| Mortgage payment | $5,000 | $4,700 |
| Property tax | $835 | $835 |
| Heating | $225 | $225 |
| Total | $6,060 | $5,760 |
At $192,000 income: $6,060 housing costs = 37.9% of gross monthly income ($16,000)
Where does $1 million buy a home?
| City | Median Home | $1M Buys… |
|---|---|---|
| Edmonton | ~$400,000 | Luxury home |
| Calgary | ~$550,000 | Premium home |
| Ottawa | ~$650,000 | Very nice detached |
| Hamilton | ~$750,000 | Good detached |
| Montréal | ~$525,000 | Premium home |
| Toronto | ~$1,100,000 | Starter detached / nice townhouse |
| Vancouver | ~$1,200,000 | Townhouse or decent condo |
Tips for affording a $1M home
- Save aggressively for down payment — The 20% minimum means you need $200,000+ saved
- Minimize other debts — Pay off car loans and credit cards before applying
- Consider a co-borrower — Combined household income makes qualification easier
- Look at nearby markets — $1M goes much further outside Toronto and Vancouver cores