How much home can you afford?
A practical guide to budgeting, down payments, and monthly costs—plus a quick calculator to estimate your price range.
Map out your budget
A common guideline is to keep total monthly housing expenses at or below one-third of your monthly income. Housing costs usually include principal, interest, property taxes, and home insurance. Leave room for changes in taxes/insurance and other recurring costs.
Rule of thumb: monthly housing ≤ 33% of gross monthly income.
Down payment basics (Canada)
- Under $500,000: minimum 5% down
- $500,000–$1.5M: 5% of first $500k + 10% of the remainder
- Over $1.5M: 20% minimum down payment
Closing costs
Budget an additional 1.5%–4% of the purchase price for closing costs (varies by province and financing).
Pre-qualification vs. pre-approval
- Pre-qualification: quick estimate based on self-reported info.
- Pre-approval: lender-reviewed with a rate hold (typically ~90 days).
Consider the big picture
- Location and commute vs. space
- Property age and maintenance
- Features and ongoing costs (HOA/condo fees, utilities, upgrades)
Affordability quick calculator
Max housing budget$1,980
Est. P&I budget$1,680
Max loan (estimated)$280,352
Down payment$50,000
Estimated maximum purchase price: $330,352
This quick estimate excludes CMHC insurance and other fees. For accuracy, speak with a licensed mortgage professional.