How much income do you need to buy a house?
To buy a home in Canada, your income must keep housing costs within 39% and all debts within 44% of gross income at the qualifying rate. This calculator works backwards from the price you want to the lowest household income that passes both tests.
Income needed to buy a house
The gross household income a lender would need to see for this price.
- Mortgage
- $603,135
- incl. $18,135 premium
- Qualifying payment
- $3,902
- at 6.12%
- GDS at that income
- 39.0%
- TDS at that income
- 42.5%
Income needed $135,700 a year.
Show the numbers
| Price | Income needed |
|---|---|
| $400K | $81K |
| $500K | $102K |
| $600K | $125K |
| $700K | $148K |
| $800K | $171K |
| $900K | $193K |
| $1000K | $214K |
| $1200K | $255K |
Assumptions & sources
Assumptions
- Solves for the lowest income that keeps GDS ≤ 39% and TDS ≤ 44% at the qualifying rate.
- The curve below uses at least the minimum down payment for each price.
How this calculator works
The calculator searches for the lowest gross household income at which the home passes GDS, TDS and the down-payment rules. If no income works (for example, the down payment is below the minimum), it tells you why.
The chart repeats the calculation at other prices using at least the minimum down payment for each. For the full picture, see income needed to buy a house.
Frequently asked questions
How much do I need to make to buy a $500,000 house in Canada?
It depends on your rate, debts, down payment and property tax. Enter $500,000 above to see the income for your situation; the chart shows a range of prices.
Does a co-borrower's income count?
Yes. Lenders add the gross income of everyone on the mortgage, and also add everyone's debts to the TDS test.
Why does my down payment change the income needed?
A larger down payment means a smaller mortgage and, below 20% down, a smaller insurance premium, so the qualifying payment and the income needed both fall.