The average home price in Ontario was approximately $880,000 in early 2025, though prices vary dramatically by region. In the Greater Toronto Area (GTA), the average exceeds $1.1 million, while cities like Ottawa, London, and Windsor offer significantly more affordable options in the $450,000 to $700,000 range.
Use the mortgage affordability calculator below to see how much home you can afford based on your income, down payment, and debts.
Mortgage affordability in Ontario
How much mortgage you can afford depends on your household income, existing debts, and the current mortgage rate. Ontario’s diverse housing market means affordability varies widely by city. Use the calculator above to see exact figures for your situation.
Key factors like your down payment, mortgage rate, and any existing debts all directly affect your purchasing power.
If you make a down payment of less than 20%, you will be considered a high-ratio borrower and will need mortgage default insurance, which adds to your total cost. This insurance can be paid upfront at closing or added to your mortgage balance.
Ontario minimum down payment chart
| Purchase Price | Minimum Down Payment |
|---|---|
| Less than $500,000 | 5% of purchase price |
| $500,000 to $999,999 | 5% of the first $500,000 + 10% of the portion above $500,000 |
| $1 million or more | 20% of the purchase price |
For example, on a $750,000 home the minimum down payment would be $50,000 (5% of $500K = $25K, plus 10% of $250K = $25K). See the down payment calculator for exact amounts.
What ratios are used to estimate mortgage affordability?
Lenders use two key ratios to determine how much mortgage you can afford:
Gross Debt Service Ratio (GDS) — looks at monthly housing costs relative to your gross household income. Housing costs include mortgage payments, property taxes, heating, and 50% of condo fees. For this calculator, the GDS ratio is set at 35%.
GDS = (Mortgage Payments + Property Tax + Heating + 50% Condo Fees) / Gross Annual Income
Total Debt Service Ratio (TDS) — adds all other debt obligations (car loans, credit cards, student loans) to the GDS calculation. The TDS ratio is set at 42% in this calculator.
TDS = (All Housing Costs + All Other Debt Payments) / Gross Annual Income
The CMHC maximum GDS is 39% and maximum TDS is 44%. Learn more about these ratios with the debt service ratio calculator.
How much house can you afford in Ontario?
These estimates are based on a 4.5% interest rate, 25-year amortization, minimum down payment, and $750 in monthly debt obligations. Use the calculator above for personalized results.
| Household Income | Estimated Affordability |
|---|---|
| $70,000 | ~$340,000 |
| $80,000 | ~$390,000 |
| $90,000 | ~$440,000 |
| $100,000 | ~$485,000 |
| $120,000 | ~$580,000 |
| $150,000 | ~$725,000 |
How much income do you need to buy a $500,000 house in Ontario?
You should make approximately $100,000 or more per year to afford a $500,000 home. This is based on a minimum down payment of $25,000, 25-year amortization at 4.5%, with $750 in other monthly debt payments. Cities like Ottawa, London, and Hamilton offer homes near this price point.
How much income do you need to buy a $700,000 house in Ontario?
You should make approximately $140,000 or more per year to afford a $700,000 home. This is based on a minimum down payment of $45,000, 25-year amortization at 4.5%, with $750 in other monthly debt payments.
How much income do you need to buy a $1,000,000 house in Ontario?
You should make approximately $195,000 or more per year to afford a $1,000,000 home. This requires a minimum 20% down payment of $200,000, 25-year amortization at 4.5%, with $750 in other monthly debt payments.
Additional costs when buying a home in Ontario
Ontario has several additional costs to factor into your budget:
- Land transfer tax — Ontario charges a land transfer tax on all property purchases. In Toronto, there is an additional municipal land transfer tax, effectively doubling the cost.
- Mortgage insurance — Required if your down payment is less than 20%. Use the mortgage insurance calculator to estimate costs.
- Closing costs — Legal fees, title insurance, home inspection, and appraisals typically add 1.5% to 4% to the purchase price.
- Property taxes — Vary significantly by municipality. Toronto rates are lower than surrounding suburbs despite higher home values.
First-time buyers may qualify for a land transfer tax rebate of up to $4,000 provincially and $4,475 municipally in Toronto.
Frequently asked questions
How much house can I afford making $100,000 in Ontario?
With a $100,000 household income, you could afford approximately $485,000 based on a 4.5% interest rate, 25-year amortization, minimum down payment, and $750 in monthly debt obligations.
What is the minimum down payment in Ontario?
The minimum down payment is 5% on the first $500,000, 10% on the portion between $500,000 and $999,999, and 20% on homes $1 million or more.
How much income do you need to buy a $500,000 house in Ontario?
You should make approximately $100,000 or more per year to comfortably afford a $500,000 home, based on a minimum down payment with a 25-year amortization at current rates.
Related guides
- Ontario mortgage rates
- Ontario land transfer tax calculator
- Ontario mortgage insurance calculator
- Ontario mortgage payment calculator
- Down payment calculator
- Debt service ratio calculator
