How Much House Can You Afford in Ontario?

How much income do you need to buy a home in Ontario?

As of July 2026, the average Ontario home sold for $797,486, down 2.9% from a year earlier, with the MLS® HPI benchmark at $749,800. Prices have eased on both measures through 2026, giving buyers more negotiating room than they had two years ago. Townhomes and condos remain the most accessible entry points, typically several hundred thousand dollars below detached prices in the same market. As a rough guide, a household earning $120,000–$150,000 with limited other debt can typically qualify for a $575,000–$775,000 purchase, depending on your down payment, amortization, and current rates. The calculator above gives you a personalized number.

How lenders decide what you can afford

Canadian lenders use two debt-service ratios to set your limit:

• GDS (Gross Debt Service) — max ~39%: your mortgage payment, property taxes, heating, and half your condo fees can’t exceed 39% of your gross income.
• TDS (Total Debt Service) — max ~44%: the above plus car loans, credit cards, and other debts can’t exceed 44%.
• The stress test: you must qualify at the greater of your contract rate + 2% or 5.25%, not just today’s rate. At a 4.5% offer, that means qualifying at 6.5%.

Home affordability across Ontario

What you can afford stretches much further in some parts of Ontario than others. Toronto and the surrounding GTA sit well above the provincial average, while Ottawa, Hamilton, Kitchener-Waterloo and London land closer to the middle, and Windsor, Sudbury, North Bay and Thunder Bay come in well below. Property tax rates work against that spread: Toronto sits near 0.7% of assessed value while Windsor and Thunder Bay run closer to 1.8%, so a cheaper house can carry a higher monthly bill than the price alone suggests. Use the calculator to set your budget, then we’ll show you which Ontario markets fit it.

Down payment rules in Ontario

• 5% on the first $500,000 of the price
• 10% on the portion from $500,000 to $1,499,999
• 20% on homes priced at $1,500,000 or more
• Under 20% down requires mortgage default insurance, written by CMHC, Sagen or Canada Guaranty. It is only available on purchases under $1.5M
• Buyers outside the City of Toronto pay only provincial land transfer tax. Toronto buyers pay a municipal tax on top. First-time buyers can claim a provincial rebate of up to $4,000 if they are 18 or older, a Canadian citizen or permanent resident, and have never owned a home anywhere

5 ways to increase how much you can afford

• Grow your down payment — every extra dollar down raises your ceiling and can cut your insurance premium.
• Pay down monthly debt — clearing a car loan or credit card balance frees up room in your TDS ratio.
• Use a 30-year amortization — available on insured mortgages for first-time buyers and all new-build purchases, lowering monthly payments in exchange for a 0.20% premium surcharge and more total interest.
• Add a co-applicant — combining incomes with a spouse or partner increases qualifying power.
• Get pre-approved — holds a rate, confirms your true budget, and makes your offers stronger.

Can you afford a new-build or pre-construction home in Ontario?

Often yes, though the cash works differently. Pre-construction deposits usually total 15% to 20%, but they’re staged over 12 to 24 months instead of due at once, which suits buyers who are still saving. New-build purchases also qualify for a 30-year insured amortization regardless of whether you’re a first-time buyer. Budget separately for HST, development charges and occupancy fees, which resale purchases don’t carry. We specialize in matching Ontario buyers to the right new-build projects at the right budget.