Income needed to buy a home calculator
Estimate the household income lenders typically look for to buy a home at a given price, using the federal stress test and the GDS/TDS debt limits.
Mortgage rules last reviewed: September 29, 2026
Most Ontario cities charge about 0.7%–1.7%. Toronto is about 0.75%.
Lenders count half of condo fees.
Car loans, credit cards (3% of balance), lines of credit, support payments.
- Down payment
- $190,000 (20.0%)
- Mortgage (including any insurance)
- $760,000
- Payment lenders test at 6.89%
- $5,271.65 /mo
- Property tax + heat + half of condo fees
- $718.75 /mo
- Housing costs used
- $5,990.40 /mo
- Income needed for GDS (housing costs vs income)
- $184,320
- Income needed for TDS (all debts vs income)
- $163,374
- Which limit sets the income
- Housing costs (GDS, 39% limit)
For illustration only. Not a rate quote, approval or pre-qualification.
How this is calculated
- Lenders qualify you at 6.89% — the higher of your rate + 2% or 5.25% — not at your actual rate.
- Limits used: housing costs up to 39% of gross income and all debts up to 44% (CMHC). Some lenders are stricter or more flexible.
- Rounded up to the nearest $1,000. This is an estimate, not a pre-approval or a promise of lending.
Calculator disclaimer
Calculators are provided for general informational and illustrative purposes only.
Results are estimates and may not reflect lender-specific qualification requirements, mortgage-insurance premiums, taxes, fees, available products, payment calculations or other transaction costs.
Calculator results do not constitute:
- Mortgage approval
- Pre-approval
- A rate commitment
- A lending commitment
- Financial advice
- Tax advice
- Or legal advice
Mortgage rules, rates and lender requirements can change.
For advice about your specific circumstances, speak with the appropriate licensed professional.
But how does this apply to your business income?
This calculator estimates the numbers you entered. How a lender treats your salary, dividends or business income is a separate question, and it's the one the Mortgage Readiness Review looks at first.