How Much Mortgage Can I Afford in Ontario in 2027?

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — A mortgage-by-income table for Ontario in 2027, the income needed for typical GTA and Hamilton homes, and the cash you need on top.

Short answer

In Ontario in 2027, most households with no other debts can borrow about 3.75 to 4.6 times gross income. At a 4.44% rate tested at 6.44%, $100,000 of income supports about $420,000 over 25 years and $150,000 supports about $664,000. Debts, condo fees and higher rates reduce it.

This guide is for Ontario buyers, in the GTA and beyond, who want a straight number for how big a mortgage their income supports in 2027. You will get a mortgage-by-income table at today’s rates, how debts and rate changes move it, the income needed for typical homes in Toronto, Mississauga, Brampton, Hamilton and Oshawa, and the cash you need on top, as of November 2026.

How much mortgage can I afford in Ontario in 2027?

With no other debts, most Ontario households can borrow roughly 3.75 to 4.6 times their gross annual income at today’s rates. The multiple rises with income because fixed costs like property tax and heating take a smaller share of a bigger pay cheque.

The table assumes a 4.44% five-year fixed rate, which was the lowest insured rate listed on Ratehub on 10 November 2026, tested at 6.44% under the stress test. It also assumes $450 a month for property tax and heating, and no car loans, student loans or card balances.

Gross household income	Maximum mortgage, 25 years	Maximum mortgage, 30 years	With a $500/month car loan, 25 years
$60,000	$225,000	$241,000	$188,000
$80,000	$323,000	$345,000	$298,000
$100,000	$420,000	$450,000	$408,000
$120,000	$518,000	$554,000	$518,000
$150,000	$664,000	$711,000	$664,000
$200,000	$908,000	$972,000	$908,000
$250,000	$1,152,000	$1,233,000	$1,152,000

Source: my calculations using CMHC’s 39% GDS and 44% TDS limits and the qualifying rule (greater of contract rate + 2% or 5.25%); rate from Ratehub, 10 November 2026. Rounded to the nearest $1,000. Mortgage amount includes any CMHC premium. Illustration only.

Notice the last column. At incomes of $60,000 to $100,000, a $500 car payment cuts the mortgage by $12,000 to $37,000. At $120,000 and above it makes no difference in this example, because the 39% housing limit binds before the 44% total limit does. That changes quickly if you add more debt.

How do Ontario lenders work out what you can borrow?

Three separate limits apply, and the lowest one wins.

1. Your income, tested at a higher rate

Lenders check that your housing costs stay under 39% of gross income (the GDS ratio) and all debts under 44% (the TDS ratio). FCAC lists what counts as housing costs: the mortgage payment, property tax, heating and half of any condo fee. The payment is calculated at the qualifying rate, the greater of 5.25% or your contract rate plus 2 points, not at your real rate. My stress test guide explains why.

2. Your down payment

With less than 20% down, the minimum is 5% of the first $500,000 and 10% of the rest, and the price must be under $1.5 million. Your cash can cap your price even when your income could carry more. See my guide to the minimum down payment in Ontario.

3. The lender’s own policies

Credit score, job history, and how the lender treats bonus, commission or self-employed income all matter. CMHC needs at least one borrower with a score of 600 or more on an insured mortgage, and some lenders want more. For uninsured loans, OSFI also limits how much of each bank’s new lending can go above 4.5 times the borrower’s income, so very high multiples get extra scrutiny.

How much do debts reduce my mortgage?

Once the 44% total debt limit is the one that binds, every $100 of monthly debt payments removes about $15,000 of mortgage over 25 years, or about $16,000 over 30 years, at a 6.44% qualifying rate.

The rules for counting debts are stricter than most people expect. CMHC tells lenders to count at least 3% of the balance on credit cards and unsecured lines of credit as a monthly payment. A $10,000 card balance can therefore count as $300 a month and cost you about $45,000 of borrowing. Pay balances down before the lender pulls your credit, and ask how the lender treats a card you pay in full each month.

FCAC also lists student loans and child or spousal support among the debts lenders count.

How do interest rates change what I can afford?

Above a 3.25% contract rate, every rate change moves your qualifying rate by the same amount. Here is a $100,000 household income, with $450 of tax and heat and no other debts, over 25 years.

Contract rate	Qualifying rate	Maximum mortgage
3.94%	5.94%	$440,000
4.44%	6.44%	$420,000
4.94%	6.94%	$402,000
5.44%	7.44%	$385,000

Source: my calculations; qualifying rule from CMHC. Rounded to the nearest $1,000.

Each half-point rise costs this household about $17,000 to $20,000 of borrowing power. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026 and said a further increase could be needed. Its next decision is on 9 December 2026. Fixed rates follow bond yields rather than the Bank’s rate, so they can move between decisions. A rate hold on your pre-approval protects you while you shop.

Free tool — what can you actually afford?

What income do I need for a typical home in Ontario?

Here is what the stress test asks for on median-priced homes in several Ontario markets. Prices are medians from TRREB MLS data via REALM for January to October 2026, at city or district level. Each example uses the minimum down payment and a 4.44% rate tested at 6.44%. Tax, heat and condo fees are my estimates, so swap in real numbers for any home you consider.

Home (2026 median)	Minimum down	Actual payment, 25 / 30 years	Income needed, 25 years	Income needed, 30 years (first-time buyer)
Hamilton condo apartment, $380,000	$19,000	$2,065 / $1,884	about $94,000	about $89,000
Toronto C01 (downtown) condo apartment, $600,000	$35,000	$3,233 / $2,948	about $140,000	about $132,000
Mississauga condo townhouse, $689,300	$43,930	$3,692 / $3,367	about $156,000	about $147,000
Oshawa detached, $730,000	$48,000	$3,902 / $3,558	about $159,000	about $150,000
Hamilton detached, $736,750	$48,675	$3,937 / $3,590	about $161,000	about $151,000
Brampton freehold townhouse, $755,000	$50,500	$4,031 / $3,676	about $162,000	about $153,000

Source: prices from TRREB MLS data via REALM, January–October 2026; CMHC premiums of 4.00% (25 years) and 4.20% (30 years) added to the loan; my estimates of $275–$450 a month for tax and heat and $450–$600 condo fees where relevant. No other debts. Illustration only.

The pattern is clear: outside the condo market, a typical GTA or Hamilton home asks for about $150,000 to $160,000 of household income with the minimum down. A bigger down payment brings that down fast. For a full breakdown at one income, see what a $100,000 salary buys in the GTA.

How much cash do I need on top of the mortgage?

The mortgage is only part of the money. You also need, in cash:

The down payment.
Ontario land transfer tax. On a home over $400,000 it is 2% of the price minus $3,525. First-time buyers can get a refund of up to $4,000, which wipes out the tax on the first $368,000.
Toronto’s municipal land transfer tax, only inside the City of Toronto, at the same rates up to $2 million. Toronto’s first-time buyer rebate is up to $4,475.
8% Ontario sales tax on any CMHC premium. CMHC says it cannot be added to the mortgage.
Legal fees, title insurance, adjustments and moving costs.

Example (first-time buyer, minimum down)	Down payment	Land transfer tax after rebates	Tax on CMHC premium	Total before legal and moving
Hamilton condo, $380,000	$19,000	$175	$1,155	$20,330
Oshawa detached, $730,000	$48,000	$7,075	$2,182	$57,257
Toronto condo, $600,000	$35,000	$8,475 (Ontario $4,475 + Toronto $4,000)	$1,808	$45,283

Source: Ontario land transfer tax formulas and first-time buyer refund (ontario.ca); Toronto MLTT rates and first-time buyer rebate (toronto.ca); CMHC; my calculations.

Buying in Toronto roughly doubles the land transfer tax compared with the same price elsewhere in Ontario. My Toronto land transfer tax guide has the full brackets.

Does a 30-year amortization help me afford more?

Yes, by about 7% of borrowing power in the first table. Stretching the same loan over 30 years lowers the payment the lender tests, so the same income supports a bigger mortgage. With less than 20% down, you can only choose 30 years if you are a first-time buyer or buying a newly built home, and CMHC charges 0.20 points more on the premium. The trade-off is much more interest over the life of the loan and slower equity.

How much mortgage should I actually take?

The lender’s number is a ceiling. It does not include child care, car insurance, savings, or repairs, and it assumes the tax and heat figures you gave are right. Property tax rates differ a lot across Ontario municipalities, so the same price can carry a very different monthly bill. My GTA property tax comparison shows the spread.

My take

I ask buyers to work out the monthly payment they would be comfortable with if the rate were one point higher at renewal, then shop at that price. In 2027, with rates having just moved up, that cushion matters. A home that works only at the very top of your approval leaves no room for a condo fee increase, a special assessment or a new baby.

Watch out

Online calculators often use your contract rate, not the qualifying rate, and skip property tax and heat. They can overstate what you can borrow by $100,000 or more. Use a lender pre-approval, not a calculator, before you make an offer, and do not take on new debt before closing.

What to do next

List your gross income and every monthly debt payment, including 3% of any card or credit line balance.
Find your row in the income table, then reduce it for any debts.
Check that your savings cover the down payment, land transfer tax and the tax on any CMHC premium.
Look at first-time buyer programs in Ontario that can lower your cash needs.
Get a pre-approval from a licensed mortgage professional before you shop. This article is general information, not financial advice.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

Book a free call Call 833-330-1925

Frequently asked questions

How much mortgage can I afford on $100,000 a year in Ontario?

About $420,000 over 25 years, or about $450,000 over 30 years, in Ontario as of November 2026. That assumes a 4.44% rate tested at 6.44%, $450 a month for tax and heat, and no other debts. A $500 car payment drops the 25-year figure to about $408,000.

How much income do I need for a $500,000 mortgage in Ontario?

Roughly $116,000 to $118,000 of gross household income for a $500,000 mortgage over 25 years in Ontario, using a 4.44% rate tested at 6.44% under the stress test, $450 a month of tax and heat and no other debts. Over 30 years, about $110,000 is enough. Debts push the income needed higher.

How many times my salary can I borrow for a mortgage in Canada?

Usually about 3.75 to 4.6 times gross income in Canada at November 2026 rates, if you have no other debts. The multiple rises with income because tax and heat take a smaller share. OSFI also limits how many uninsured loans above 4.5 times income each bank can make, so higher multiples get more scrutiny.

What is the 39% and 44% rule for mortgages?

It is the debt limit lenders use in Canada. Housing costs (mortgage payment at the qualifying rate, property tax, heating and half of condo fees) must stay under 39% of gross income. Housing plus all other debts must stay under 44%. CMHC applies these limits to insured mortgages, and most lenders use similar ones.

Does a car loan affect how much mortgage I can get?

Yes. Once the 44% total debt limit binds, each $100 of monthly debt cuts your mortgage by about $15,000 over 25 years at a 6.44% qualifying rate. In Ontario in 2026, a $500 car payment can remove up to about $75,000 of borrowing power; in my examples it removed $12,000 to $37,000 at incomes of $60,000 to $100,000.

How much do I need to make to buy a house in Ontario in 2027?

For a median-priced detached home in Hamilton or Oshawa, about $150,000 to $160,000 of household income with the minimum down payment, based on January to October 2026 TRREB data and a 4.44% rate tested at 6.44%. A Hamilton condo apartment needs about $90,000 to $95,000. Larger down payments lower these figures.

Do rising interest rates reduce how much mortgage I can afford?

Yes. In Canada the qualifying rate is your contract rate plus 2 points, so every rate increase also raises the test. For a $100,000 income in November 2026, each half-point rise cuts the maximum 25-year mortgage by about $17,000 to $20,000. A rate hold on a pre-approval protects you while you shop.

Is the mortgage I am approved for the amount I should borrow?

Not necessarily. A lender’s approval is the maximum it will allow under the 39% and 44% limits, and it ignores child care, savings, repairs and other living costs. Many Ontario buyers in 2027 are better off shopping below their approval so a higher renewal rate or condo fee increase does not strain the budget.

How much cash do I need to close on a home in Ontario?

In Ontario you need the down payment plus land transfer tax, 8% sales tax on any CMHC premium, legal fees, title insurance and adjustments. For a first-time buyer of a $600,000 Toronto condo with minimum down, the down payment, land transfer tax after rebates and premium tax come to about $45,300 before legal and moving costs.

Sources

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