What can you afford in Canada?
Use our Canadian affordability calculator to estimate how much rent you can afford, the home price you may qualify for, and a suggested monthly savings target.
Housing options your income could support
Monthly rent budget
$ 1,875 CAD30% of gross incomeHome price
$ 320,000 CAD~$1,707 estimated monthly payment · ~$16,000 minimum down payment · 25-year amortization · 4.25% mortgage rate · 6.25% qualifying rateRent or buy?
Look at both options side-by-side to help you make an informed decision.
On a gross income of $75,000 a year before tax, a single applicant could afford a rent budget of about $1,875 a month, or an estimated home price near $320,000, assuming a minimum down payment of about $16,000 and no other debt. The home estimate uses a 39% Gross Debt Service (GDS) limit, a 6.25% qualifying rate, a 4.25% assumed mortgage rate, a 25-year amortization, and an assumed 1% annual property tax rate. Actual affordability may vary based on lender requirements, down payment, property taxes, heating costs, debt, and other expenses. See our methodology
Savings goals and how to reach them
Savings calculator
Curious how long it could take to reach your savings goal? Or how much you could put aside over time?
Time to save the minimum down payment
2 years 2 months$16,000 at $625 a month
At a suggested savings target of 10% of a gross income of $75,000 a year before tax, about $625 a month, it could take about 2 years 2 months to save the minimum down payment of about $16,000 on the estimated home price above. This counts deposits only. Home prices, rates and income can all change while you save. The right savings amount for you depends on your take-home pay, expenses, debts and goals. See our methodology
How much could you borrow?
- Car loan
- $ 44,700 CAD
- $875/month · 6.55% over 60 months
- Personal loan
- $ 43,400 CAD
- $875/month · 7.8% over 60 months
- Credit card
- $ 29,200 CAD
- $875/month at 3% of the balance
Affordability calculator
Your rent, debts and everyday costs change every figure above. Enter your own and see how it all fits together.
On a gross income of $75,000 a year before tax, a single applicant could carry about $875 a month in new debt payments, after a rent budget of about $1,875 a month and no other debt. This keeps total debt payments within a 44% Total Debt Service (TDS) limit. The car loan and the personal loan use the average rates on new bank loans, 6.55% and 7.8%, over 60 months. The credit card figure counts 3% of the balance as the monthly payment, as mortgage lenders do. Each figure uses the same $875 a month, so you could choose one of the three. Actual limits vary by lender, credit history and other debts. See our methodology
Common questions about affordability in Canada
Affordability depends on income, costs, debts and goals. Here are a few common questions about rent, mortgages, down payments and savings in Canada, along with the assumptions Affordit uses in its estimates.
How much rent can I afford?
A common Canadian housing affordability benchmark is to keep total shelter costs below 30% of before-tax household income. For renters, shelter costs can include rent as well as utilities such as electricity, heating and water. Affordit uses this benchmark as a simple starting point, not a hard rule. Statistics Canada: Housing affordability
What is the mortgage stress test?
The mortgage stress test checks whether you could still afford your mortgage at a higher interest rate than the one you actually receive. For most federally regulated mortgages, you qualify at the higher of 5.25% or your mortgage contract rate plus 2 percentage points. With Affordit’s assumed 4.25% rate, the qualifying rate is 6.25%. OSFI: Minimum qualifying rate
What are GDS and TDS ratios?
Gross Debt Service (GDS) measures how much of your gross income goes toward housing costs, such as your mortgage payment, property taxes and heating. Total Debt Service (TDS) also includes other debt payments, such as car loans and credit cards. Affordit uses limits of 39% GDS and 44% TDS when estimating mortgage affordability. FCAC: Preparing to get a mortgage
Can I buy a home with a 5% down payment?
In some cases, yes. For a home priced at $500,000 or less, the minimum down payment is generally 5%. For homes priced above $500,000 and below $1.5 million, the minimum is 5% on the first $500,000 and 10% on the remaining portion. A down payment below 20% typically requires mortgage loan insurance. Homes priced at $1.5 million or more are not eligible for insured mortgage financing and generally require at least 20% down. CMHC: Mortgage loan insurance requirements
How much should I save?
There isn't one savings amount that works for everyone. Affordit uses 10% of gross income as a simple planning target, but your ideal amount depends on your take-home pay, expenses, debts and goals. For emergency savings, FCAC suggests working toward roughly 3 to 6 months of regular expenses. FCAC: Setting up an emergency fund