In Canada, mortgages are an essential component for people who are looking to buy a property. Lenders, often banks or mortgage companies, offer loans to cover the cost of property. Various options related to mortgage amount, rates, and terms are available, tailored to the financial needs and creditworthiness of the borrowers. Needless to say, navigating the Canadian real estate market requires good financial knowledge. In this blog, we will try to understand what the income requirements are for obtaining a mortgage in Canada. Let’s get started.

Calculating Your Mortgage Affordability

If you are planning to buy a property soon in Canada, then you must know how much you can afford to borrow. For this, a general principle suggests that your monthly housing expenses should not exceed 32% of your gross monthly income. These expenses include your mortgage principal and interest, property taxes, heating expenses, and, in the case of condominiums, half of the monthly fees.

Furthermore, your total monthly debt, which encompasses housing costs, credit card payments, car loans, and other personal debts, should not represent more than 40% of your gross income. The Gross Debt Service (GDS) ratio and the Total Debt Service (TDS) ratio are two important metrics that lenders use to summarise these requirements. By adhering to these guidelines, prospective homeowners can better align their homebuying aspirations with their financial realities, paving the way for sustainable homeownership.

Following are the formulas for both of these ratios: 

    • Gross Debt Service Ratio = Mortgage Payments + Property Taxes  + Heating Costs + 50% of the Condo Fees ÷ Annual Income                                            
    • Total Debt Service Ratio = Housing Expenses + Credit Card Interest + Car Payments + Loan Expenses ÷ Annual Income

Apart from this, Loan to Value Ratio also impacts whether you will be able to qualify for a mortgage. Along with this, the property that is being used as collateral, the income capacity of the borrower, the borrower’s capital in the form of savings/investments and down payments also matter a lot.

Passing The Mortgage Stress Test

Passing The Mortgage Stress Test in Canada

You will have to pass the mortgage stress test to qualify for the mortgage. It will prove that you can afford payments at an interest rate that is typically higher than the actual rate mentioned in the mortgage contract.

The following steps can help you pass the stress test.

    • Boost Your Income: Increasing your income is a good way to increase your chances of passing the stress test. For this, you can consider career advancement, taking on additional work, or other income-generating activities.
    • Lower Your Debts: Reducing your total debt will improve both your TDS and GDS ratios. Focus on paying down credit cards, loans, and other debts to improve your financial standing.
    • Save for a Larger Down Payment: The more you can pay upfront, the less you’ll need to borrow. A larger down payment can significantly increase your chances of passing the stress test.
    • Consider a Lower-Priced Home: Opting for a property with a lower purchase price will reduce the required mortgage amount, making it easier to pass the stress test.
    • Improve Your Credit Score: A higher credit score can play a vital role. Pay your bills on time, reduce outstanding debts, and avoid opening new credit accounts leading up to the mortgage application.
    • Variable and Fixed Rates: Understand the difference between variable and fixed rates. Fixed rates are constant throughout the term, while variable rates can fluctuate based on market conditions. Choose the one that aligns with your financial capacity and risk tolerance.
    • Financial Cushion: Create a financial cushion. Save an emergency fund that covers at least three to six months of expenses to absorb potential increases in interest rates or unexpected financial challenges.
    • Engaging Professional Help: Consider seeking help from a mortgage broker. They can provide insights, advise on the best mortgage products and lenders, and assist in preparing for the stress test.

Housing Affordability By Province

Here is a quick snapshot of Canada’s housing affordability by province.

Province

Income Sep 2022

Income Sep 2023

Change in Income

Home Price Sep 2022

Home Price Sep 2023

Change in Home Price

BC

$188,527

$205,492

↑ $16,965

$985,700

$995,900

↑ $10,200

AB

$92,069

$103,145

↑ $11,075

$465,400

$485,000

↑ $19,600

SK

$67,902

$72,559

↑ $4,657

$329,300

$327,800

↓ $1,500

MB

$87,869

$96,721

↑ $8,852

$344,200

$358,167

↑ $13,967

ON

$174,002

$189,489

↑ $15,487

$898,700

$908,000

↑ $9,300

QC

$94,354

$102,599

↑ $8,244

$466,100

$471,800

↑ $5,700

NB

$68,343

$74,468

↑ $6,125

$286,400

$293,800

↑ $7,400

NS

$74,724

$85,752

↑ $11,027

$375,700

$401,700

↑ $26,000

PE

$78,491

$84,062

↑ $5,571

$367,300

$367,400

↑ $100

NL

$56,866

$63,055

↑ $6,189

$285,900

$295,100

↑ $9,200

Income Needed To Buy An Average-Priced Home In Canada

Buying a home in Canada can be an overwhelming experience for many. As per the data, the average home price required to buy a home in Canada currently stands at $757,300. 

What Does The Average Income Buy You Across Canada

The average income in Canada ranges between $68,000 to $72,000. This income range qualifies you for less than the average price of a home in Canada. With this kind of income range, the mortgage amount will range between $210k to $220k. 

Needed Income For Different Types of Mortgages

Different Types of Mortgages in Canada

We understand that each mortgage requires an income slab requirement that needs to be met by the customer. Here we have simplified this eligibility in the form of a table:

Income needed to qualify for mortgage on our insured fixed rate:

Mortgage Amount

Mortgage Payment

Qualifying Mortgage Payment

Qualifying Total Payment

Gross Annual Income Required

$100,000.00

$601

$722

$964.12

$29,665

$200,000.00

$1,202

$1,443

$1,778.25

$54,715

$300,000.00

$1,803

$2,165

$2,592.37

$79,765

$400,000.00

$2,404

$2,886

$3,406.49

$104,815

$500,000.00

$3,006

$3,608

$4,220.61

$129,865

$600,000.00

$3,607

$4,329

$5,034.74

$154,915

$700,000.00

$4,208

$5,051

$5,848.86

$179,965

$800,000.00

$4,809

$5,772

$6,662.98

$205,015

$900,000.00

$5,410

$6,494

$7,477.10

$230,065

$1,000,000.00

N/A

N/A

N/A

N/A

Income needed to qualify for mortgage on our insured variable rate:

Mortgage Amount

Mortgage Payment

Qualifying Mortgage Payment

Qualifying Total Payment

Gross Annual Income Required

$100,000.00

$641

$769

$1,011.10

$31,111

$200,000.00

$1,283

$1,537

$1,872.21

$57,606

$300,000.00

$1,924

$2,306

$2,733.31

$84,102

$400,000.00

$2,565

$3,074

$3,594.41

$110,597

$500,000.00

$3,206

$3,843

$4,455.51

$137,093

$600,000.00

$3,848

$4,611

$5,316.62

$163,588

$700,000.00

$4,489

$5,380

$6,177.72

$190,084

$800,000.00

$5,130

$6,148

$7,038.82

$216,579

$900,000.00

$5,771

$6,917

$7,899.92

$243,075

$1,000,000.00

N/A

N/A

N/A

N/A

Income needed to qualify for mortgage at our uninsured fixed rate:

Mortgage Amount

Mortgage Payment

Qualifying Mortgage Payment

Qualifying Total Payment

Gross Annual Income Required

$100,000.00

$604

$734

$988.30

$33,884

$200,000.00

$1,207

$1,468

$1,826.59

$62,626

$300,000.00

$1,811

$2,202

$2,664.89

$91,368

$400,000.00

$2,414

$2,937

$3,503.19

$120,109

$500,000.00

$3,018

$3,671

$4,341.48

$148,851

$600,000.00

$3,622

$4,405

$5,179.78

$177,592

$700,000.00

$4,225

$5,139

$6,018.08

$206,334

$800,000.00

$4,829

$5,873

$6,856.37

$235,076

$900,000.00

$5,432

$6,607

$7,694.67

$263,817

$1,000,000.00

$6,036

$7,341

$8,532.97

$292,559

Income needed to qualify for mortgage on our uninsured variable rate:

Mortgage Amount

Mortgage Payment

Qualifying Mortgage Payment

Qualifying Total Payment

Gross Annual Income Required

$100,000.00

$652

$790

$1,044.44

$35,809

$200,000.00

$1,304

$1,581

$1,938.87

$66,476

$300,000.00

$1,956

$2,371

$2,833.31

$97,142

$400,000.00

$2,608

$3,161

$3,727.75

$127,808

$500,000.00

$3,260

$3,951

$4,622.18

$158,475

$600,000.00

$3,912

$4,742

$5,516.62

$189,141

$700,000.00

$4,564

$5,532

$6,411.06

$219,808

$800,000.00

$5,215

$6,322

$7,305.49

$250,474

$900,000.00

$5,867

$7,112

$8,199.93

$281,140

$1,000,000.00

$6,519

$7,903

$9,094.37

$311,807

Income Needed To Qualify For Common Mortgage Balances

In Canada, usually income levels such as $100K, $200K, $300K, $400K, $500K, $600K, $700K, $800K, $900K and $1 million mortgages are quite popular in Canada. Here’s a basic snapshot of the same. 

Income Needed For A $100,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$111,111

Down payment

Between 5% to 19.99%

$11,111

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premium not included

$100,000

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$3,100

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$103,100

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$601

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$1,111.11

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$721.53

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$964.12

Gross Annual Income Required to Qualify

Insured mortgages are limited to 39% of the gross annual income

$29,665.31

Income Needed For A $200,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$222,222

Down payment

Between 5% to 19.99%

$22,222

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premium not included

$200,000

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$6,200

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$206,200

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$1,202

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$2,222.22

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$1,443.06

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$1,778.25

Gross Annual Income Required to Qualify

Insured mortgages are limited to 39% of the gross annual income

$54,715.24

Income Needed For A $300,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Less  of the purchase price or appraised value

$333,333

Downpayment

Between 5% to 19.99%

$33,333

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums are not included

$300,000

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$9,300

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$309,300

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortization

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$1,803

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$3,333.33

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$2,164.59

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$2,592.37

Gross Annual Income Required to Qualify

Insured mortgage limited to 39% of the gross annual income

$79,765.16

Income Needed For A $400,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$444,444.44

Down payment

Between 5% to 19.99%

$44,444.00

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premium not included

$400,000.00

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% downpayment

$12,400.00

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$412,400.00

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$2,404.44

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$4,444.44

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$2,886.12

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$3,406.49

Gross Annual Income Required to Qualify

Insured mortgages are limited to 39% of the gross annual income

$104,815.09

Income Needed For A $500,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Less of the purchase price or appraised value

$500,000.00

Down payment

20% or greater

$100,000.00

Mortgage Interest Rate

The lowest uninsured rate at this time is the 5-year fixed rate

6.14%

Mortgage Needed

Default Insurance Premium is not required

$400,000.00

Default Insurance Premium

Not applicable on amortisations greater than 25-years

$0.00

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) is not applicable

$400,000.00

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%

8.14%

Mortgage Term

The lowest uninsured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 30 years

30 years

Actual Mortgage Payment (Monthly)

The default insurance Premium is not applicable

$2,414.40

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$5,000.00

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$2,936.52

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$3,503.19

Gross Annual Income Required to Qualify

Uninsured mortgages are limited to 35% of the gross annual income

$120,109.26

Income Needed For A $600,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Less of the purchase price or appraised value

$666,666.67

Down payment

Between 5% to 19.99%

$66,667.00

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums are not included

$600,000.00

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$18,600.00

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$618,600.00

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$3,606.66

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$6,666.67

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$4,329.18

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$5,034.74

Gross Annual Income Required to Qualify

Insured mortgages are limited to 39% of the gross annual income

$154,914.94

Income Needed For A $700,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Less of the purchase price or appraised value

$777,777.78

Down payment

Between 5% to 19.99%

$77,778.00

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums are not included

$700,000.00

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$21,700.00

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$721,700.00

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$4,207.77

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$7,777.78

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$5,050.71

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$5,848.86

Gross Annual Income Required to Qualify

Insured mortgage limited to 39% of the gross annual income

$179,964.87

Income Needed For A $800,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$888,888.89

Down payment

Between 5% to 19.99%

$788,888.89

Mortgage Interest Rate

The lowest insured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums are not included

$800,000.00

Default Insurance Premium

Applicable at 3.10% of mortgage with less than 20% down payment

$24,800.00

Total Mortgage Needed

High-ratio mortgage default insurance (CMHC) premiums included

$824,800.00

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

The lowest fixed insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

CMHC Premium not included

$4,808.88

Heating Costs (Monthly)

Calculated as sqft x $0.60 (house) or sqft x $0.40 (condo) on an annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$8,888.89

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

$5,772.24

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

$6,662.98

Gross Annual Income Required to Qualify

Insured mortgages are limited to 39% of the gross annual income

$205,014.79

Income Needed For A $900,000 Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$1,000,000.00

Down payment

Between 5% to 19.99%

$100,000.00

Mortgage Interest Rate

The lowest uninsured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

Default Insurance Premium is not required

$900,000.00

CMHC Default Insurance (borrower paid)

Not applicable on the home price of $1 million or more

Not Applicable

Mortgage Needed

Not applicable on home price of $1 million or more

Not Applicable

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

Lowest insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortisation

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

Default Insurance is not applicable on purchase price of $1 million or more

Not Applicable

Heating Costs (Monthly)

Calculated based on sqft x $0.60 (house) or sqft x $0.40 (condo) on annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$10,000.00

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

Unavailable

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

Unavailable

Gross Annual Income Required to Qualify

Insured mortgage limted to 39% of the gross annual income

Unavailable

Income Needed For A $1 Million Mortgage In Canada

Factors

Considerations

Example Values & Calculations

Home Price

Lesser of the purchase price or appraised value

$1,111,111.11

Down payment

Between 5% to 19.99%

$111,111.00

Mortgage Interest Rate

The lowest uninsured rate at this time is the 5-year fixed rate

5.34%

Mortgage Needed

Default Insurance Premium is not required

$1,000,000.00

CMHC Default Insurance (borrower paid)

Not applicable on the home price of $1 million or more

Not Applicable

Mortgage Needed

Not applicable on home price of $1 million or more

Not Applicable

Stress Test Qualifying Rate

Greater of the minimum qualifying rate at 5.25%, or contract rate + 2%)

7.34%

Mortgage Term

Lowest insured rate at this time is the 5-year fixed rate

5 years

Mortgage Amortization

Limited to a maximum of 25 years

25 years

Actual Mortgage Payment (Monthly)

Default Insurance is not applicable on purchase price of $1 million or more

Not Applicable

Heating Costs (Monthly)

Calculated based on sqft x $0.60 (house) or sqft x $0.40 (condo) on annual basis.

$150.00

Annual Property Taxes (1% of property value)

Calculated as annual value but included as monthly

$11,111.11

Stress Tested Mortgage Payment (Monthly)

Monthly mortgage payment calculated at the qualifying stress rate

Unavailable

Total Stress Tested Qualifying Payment (Monthly)

Total of the 3 values above plus condo fees (if applicable)

Unavailable

Gross Annual Income Required to Qualify

Insured mortgage limited to 39% of the gross annual income

Unavailable

You May Also Read

Guide To Canada Mortgage Approval

Canada Mortgage Approval

What is Pine Mortgage in Canada

Pine Mortgage in Canada

Know The Mortgage Prepayment Penalty

Mortgage Prepayment Penalty

Pros And Cons of Porting a Mortgage

Porting a Mortgage

Frequently Asked Questions (FAQs)

What salary do I need to buy a house in Canada?

Depending upon multiple factors like your location, the price of the home you want to purchase, your down payment amount, along with your financial circumstances. Additionally, your total debt must not exceed 40% of your gross monthly income.

How many times my salary can I borrow for a mortgage in Canada?

The specific amount you can borrow depends on your income, credit score, down payment, and other financial factors. Lenders may approve you for a mortgage of up to 4.5 times your annual income, but it's essential to consult with a mortgage professional before making any decision.

Why choose a 25-year versus a 30-year amortisation?

The choice between a 25-year and a 30-year mortgage amortisation period depends on your financial goals and circumstances. A 25-year amortisation period will have higher monthly payments but lower overall interest costs, as you'll pay off the mortgage faster. In contrast, a 30-year amortisation period will result in lower monthly payments but higher overall interest costs over the life of the loan.

What income is needed for each $100K mortgage balance?

The income needed for each $100,000 of mortgage balance can vary based on your interest rate, amortisation period, and other financial factors.

What other costs should I consider when purchasing a home in Canada?

When purchasing a home in Canada, there are several additional costs to consider beyond the purchase price and the down payment. These may include closing costs, property taxes, home inspection and appraisal fees, maintenance and utility charges.