How much home can I afford in Canada?

Your maximum home price depends on your income, down payment, monthly debts, and current mortgage rates. Lenders cap your Gross Debt Service (GDS) ratio near 39% of gross income and your Total Debt Service (TDS) ratio near 44%, and every borrower must pass the mortgage stress test. This calculator applies all three so your estimate reflects what a lender would actually approve.

What is the minimum down payment in Canada?

You need 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1,499,999, and 20% on homes priced $1.5 million or more. As of December 15, 2024, mortgage default insurance is available on homes up to $1.5 million (up from $1 million). Example: a $600,000 home needs $35,000 down.

What is the mortgage stress test?

Every borrower must qualify at the higher of their contract rate plus 2%, or a 5.25% minimum qualifying rate (as of 2025). For example, a 5.25% rate is tested at 7.25%. It confirms you could still afford payments if rates rise, and it is built into this calculator automatically.

What are GDS and TDS ratios?

GDS (Gross Debt Service) is your housing costs — mortgage, property tax, heating, and 50% of condo fees — as a share of gross income, capped around 39%. TDS (Total Debt Service) adds all your other debt payments, capped around 44% for credit scores of 680 or higher. Whichever limit you reach first sets your maximum affordability.

What is CMHC mortgage default insurance?

It is required when your down payment is under 20%. The premium is 4.00% of the mortgage at 5–9.99% down, 3.10% at 10–14.99%, and 2.80% at 15–19.99%, and it is added to your mortgage balance. Choosing a 30-year amortization adds a 0.20% surcharge. Reaching a 20% down payment removes the premium entirely.

How long can my mortgage amortization be?

25 years is the standard for insured mortgages. Since December 15, 2024, 30-year amortizations are available to all first-time buyers and to anyone purchasing a newly built home. A longer amortization lowers your monthly payment but increases the total interest you pay over the life of the loan.

What programs help first-time buyers in Canada?

Several stack together. The First Home Savings Account (FHSA) lets you contribute $8,000 per year up to $40,000, with tax-deductible contributions and tax-free withdrawals. The RRSP Home Buyers’ Plan allows a tax-free withdrawal of up to $60,000. The Home Buyers’ Amount gives a $1,500 tax credit. And the First-Time Home Buyers’ GST Rebate can save up to $50,000 on a qualifying new home priced up to $1 million.

Do first-time buyers get a land transfer tax rebate?

Yes, in several provinces. Ontario refunds up to $4,000, and the City of Toronto adds up to $4,475 on top — up to $8,475 combined. British Columbia offers a first-time buyers’ exemption on homes up to $835,000. Alberta and Saskatchewan charge no land transfer tax at all.

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

It depends on the price and current rates. As of mid-2026, buying the average Toronto home (around $946,000) required roughly $195,000 in household income with 20% down. A larger down payment or lower monthly debts meaningfully reduces the income you need — adjust the numbers above to see your own figure.

What closing costs should I budget for?

Plan for about 1.5% to 4% of the purchase price: land transfer tax (the largest line, and effectively doubled in Toronto), legal fees of roughly $1,100–$2,500, title insurance, a home inspection, and property tax adjustments. First-time buyers often recover part of the land transfer tax through provincial and municipal rebates.

Should I choose a fixed or variable rate?

Fixed rates lock your rate for the term (typically 1–5 years) for predictable payments. Variable rates move with the prime rate — historically cheaper over the long run, but with more month-to-month uncertainty. The right choice depends on your budget and comfort with rate changes.

How does Zown’s down payment boost help?

When you buy through Zown, we return up to 50% of the buyer-side commission to you — often thousands of dollars — before you close. Apply it to your down payment to reach a lower CMHC premium tier, cover closing costs, or increase your overall buying power.

Affordability Calculator | See How Much Home You Can Afford | Zown

Browse every listing. Access every MLS listing across Canada in one place.

Licensed agents. Work with dedicated agents who negotiate on your behalf.

Down payment boost. Get up to $25,000 back from our commission, toward your down payment.

No hidden fees. No repayment, no credit check, no strings attached.

What do you earn?

Your total household income, before taxes.

/yr

What do you owe?

Your total monthly debt payments — car, credit cards, loans.

/mo

Skip rent and utilities — just the debts you pay down each month.

What have you saved?

The cash you'll put toward your down payment.

You can afford

$430,000

Estimated monthly payment$2,785/mo

Down payment$50,000 (11.6%)

CMHC insurance$11,780

Your down payment, boosted

Your down payment$50,000

+ Zown cashback+$5,375

Effective down payment$55,375

Browse homes under $430,000

An estimate to get you started — not a mortgage approval.

Canada

Home affordability in Canada, explained

What lenders look at, the rules that shape your budget, and the programs that can stretch it further.

How lenders decide

Lenders cap housing costs (GDS ~39%) and total debts (TDS ~44%) against your income, and the stress test qualifies you at your rate + 2% (or 5.25%). The calculator applies all three.

Minimum down payment

5% on the first $500K, 10% up to $1.5M, 20% above. Insured up to $1.5M since Dec 2024 — a $600K home needs just $35,000.

CMHC mortgage insurance

Required under 20% down. The premium runs 2.8–4.0% of the mortgage, added to your balance, and disappears once you reach 20% down.

Amortization: 25 vs 30 years

Standard is 25 years; 30-year terms are now open to first-time buyers and new-build buyers. Longer means lower payments but more total interest.

First-time buyer programs

Stack the FHSA, the RRSP Home Buyers’ Plan ($60K), the $1,500 Home Buyers’ Amount, the new GST rebate (up to $50K on a new home), and land-transfer rebates.

Closing costs & today’s market

Budget 1.5–4% of the price for closing costs. The average Canadian home was ~$702K in mid-2026; the average Toronto home took ~$195K income.

Figures are current as of mid-2026 and change as rates and prices move. Sources include CMHC, the Department of Finance Canada, the Canada Revenue Agency, and CREA. This is general information, not financial or mortgage advice.

Learn More

Home affordability questions, answered

Common questions about qualifying, down payments, and buying a home in Canada.

Still have questions?

Our team can help you understand your options and walk you through the numbers.

Talk to a Zown advisor

Browse every listing. Access every MLS listing across Canada in one place.

Licensed agents. Work with dedicated agents who negotiate on your behalf.

Down payment boost. Get up to $25,000 back from our commission, toward your down payment.

No hidden fees. No repayment, no credit check, no strings attached.

What do you earn?

Your total household income, before taxes.

/yr

What do you owe?

Your total monthly debt payments — car, credit cards, loans.

/mo

Skip rent and utilities — just the debts you pay down each month.

What have you saved?

The cash you'll put toward your down payment.

You can afford

$430,000

Estimated monthly payment$2,785/mo

Down payment$50,000 (11.6%)

CMHC insurance$11,780

Your down payment, boosted

Your down payment$50,000

+ Zown cashback+$5,375

Effective down payment$55,375

Browse homes under $430,000

An estimate to get you started — not a mortgage approval.

Canada

Home affordability in Canada, explained

What lenders look at, the rules that shape your budget, and the programs that can stretch it further.

How lenders decide

Lenders cap housing costs (GDS ~39%) and total debts (TDS ~44%) against your income, and the stress test qualifies you at your rate + 2% (or 5.25%). The calculator applies all three.

Minimum down payment

5% on the first $500K, 10% up to $1.5M, 20% above. Insured up to $1.5M since Dec 2024 — a $600K home needs just $35,000.

CMHC mortgage insurance

Required under 20% down. The premium runs 2.8–4.0% of the mortgage, added to your balance, and disappears once you reach 20% down.

Amortization: 25 vs 30 years

Standard is 25 years; 30-year terms are now open to first-time buyers and new-build buyers. Longer means lower payments but more total interest.

First-time buyer programs

Stack the FHSA, the RRSP Home Buyers’ Plan ($60K), the $1,500 Home Buyers’ Amount, the new GST rebate (up to $50K on a new home), and land-transfer rebates.

Closing costs & today’s market

Budget 1.5–4% of the price for closing costs. The average Canadian home was ~$702K in mid-2026; the average Toronto home took ~$195K income.

Learn More

Home affordability questions, answered

Common questions about qualifying, down payments, and buying a home in Canada.

Still have questions?

Our team can help you understand your options and walk you through the numbers.

Talk to a Zown advisor

Plan your home purchase.

Home affordability in Canada, explained

How lenders decide

Minimum down payment

CMHC mortgage insurance

Amortization: 25 vs 30 years

First-time buyer programs

Closing costs & today’s market

Home affordability questions, answered

Still have questions?

Plan your home purchase.

Home affordability in Canada, explained

How lenders decide

Minimum down payment

CMHC mortgage insurance

Amortization: 25 vs 30 years

First-time buyer programs

Closing costs & today’s market

Home affordability questions, answered

Still have questions?