Income needed to buy a house

The gross household income a lender would need to see for this price.

Amortization
Household income needed$135,700per year before tax · $11,308 a month
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%
GDS (housing costs) is the limit here, so paying off other debts wouldn't lower the income needed; a bigger down payment or a lower price would.

Income needed $135,700 a year.

Income needed by home priceHousehold income needed for prices from $400,000 to $1.2M at 4.12%, 25 years, with your debts and costs.$0$125K$250K$375K$500K$400K$500K$600K$700K$800K$900K$1000K$1200K
Show the numbers
Income needed by home price
PriceIncome 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.

Sources

  1. CMHC — Calculating GDS / TDS. Checked .
  2. OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
  3. CMHC — Mortgage loan insurance cost (premium table). Checked .
  4. CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
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