The average home price in Canada was $649,096 in August 2024. How much income would it take to purchase the average home in Canada? For the averagepriced home in Canada to be affordable — one would need a monthly income of $12,422 or an annual income of $149,067. The income needed to afford a home in Canada varies significantly depending on the province and city where you intend to purchase. Here is what you would need to make around Canada to afford a home:
How is the required income needed to purchase a home calculated?
To determine the income needed to afford a home in Canada — we will start with the August 2024 average home price. The total mortgage amount was calculated as the home price less a 20% down payment as this eliminates the need for CMHC insurance. A 5year fixed mortgage rate of 6.50% over a 25year amortization was then used to calculate the mortgage payment. For this home to be considered affordable we applied the 28/36 rule which gave us the annual salary needed to purchase this home in Canada.
Example: How much do you have to make to afford a $400,000 house in Canada?
It would take income of $91,862 to afford a $400,000 house in Canada. This is based on a 20% (or $80,000 down payment) which leaves a $320,000 mortgage. Over a 25year amortization period at a 5year fixed rate of 6.50% the mortgage payment would be $2,143 / month. Since the 28/36 rule states that no more than 28% of income should be spend on home expenses — it would take income of at least $91,862 for this home to be affordable.

Annual Income Needed Calculation Breakdown
$2,143 monthly mortgage payment
/ 28% (28/36 rule)
= $7,655 monthly income needed
x 12 months
= $91,862 annual income needed
If you want to see how much it would take to afford a home under other conditions. Check out our home affordability calculator.
Income needed to afford a home across Canadian provinces
Provinces that require the most household income to afford the average home price are British Columbia and Ontario — both of which require $200K+ of annual income. The average home price in British Columbia is $998,159 which would require annual income of $229,231 or monthly income of $19,103. Ontario's average home price is $884,761 which would require annual income of $203,189 or monthly income of $16,932.
Which are the most affordable provinces? Newfoundland and Labrador requires the least annual income at $73,175 for the average home price of $318,631 to be considered affordable. New Brunswick is a close second with $75,627 annual income required to afford the average home price of $329,307. While these two provinces require the least amount annual income, would they still be considered affordable?
Which provinces are considered affordable / unaffordable?
We can compare the annual income needed with the average household income for each province to determine if these homes are affordable. Six out of the ten provinces are affordable based on the average household income — these provinces are Alberta, Saskatchewan, Manitoba, Newfoundland and Labrador, New Brunswick, and PEI. Provinces in which the average household income is not sufficient to purchase the average house are British Columbia, Ontario, Quebec, and Nova Scotia.
Province  Average Home Price  Annual Salary 

British Columbia  $998,159  $229,231 
Alberta  $503,502  $115,631 
Saskatchewan  $332,413  $76,340 
Manitoba  $383,396  $88,048 
Ontario  $884,761  $203,189 
Quebec  $506,224  $116,256 
Newfoundland and Labrador  $318,631  $73,175 
New Brunswick  $329,307  $75,627 
PEI  $379,098  $87,061 
Nova Scotia  $460,753  $105,814 
Income needed to afford a home in major Canadian cities
It takes a lot of income to purchase the average priced home across Canadian cities. Many of these major cities have homes with average prices in excess of $1 million dollars. Vancouver topped the list with an annual salary of $310,029 needed to afford the average home price of $1,349,985. Toronto's average home price of $1,162,167 requires annual income of $266,896 to be considered affordable.
Major City  Average Home Price  Annual Salary 

Ottawa  $686,535  $157,665 
Missisauga  $1,103,727  $253,475 
Calgary  $623,245  $143,131 
Edmonton  $438,973  $100,812 
Montreal  $614,972  $141,231 
KitchenerWaterlooCambridge  $790,945  $181,644 
Vancouver  $1,349,985  $310,029 
London  $671,309  $154,169 
Winnipeg  $407,721  $93,635 
Toronto (GTA)  $1,162,167  $266,896 
Brampton  $1,009,802  $231,905 
Hamilton  $831,190  $190,886 
How Much Home Can You Afford on a 100K Salary?
Let's calculate how much home you can afford if you're making $100,000 a year in Canada. We will follow the 28/36 rule to make sure mortgage payments are considered affordable. This means that your monthly mortgage payment should not exceed 28 percent of your gross income. A $100,000 gross annual salary would be $8,333 on a gross monthly basis. This means that your maximum monthly mortgage payment would be $2,333 ($8,333 gross monthly income * 28%).
Let's say you are able to put down 20% on a house that is $400,000 at a 5year fixed rate of 5.5% over a 25year amortization period. Your monthly payment will be calculated at $1,953 which is below your maximum monthly mortgage payment of $2,333 so you would be able to afford a $400K home in Canada. If the home is $500K your monthly mortgage payment will increase to $2,442 which is above your affordability based on the 28/36 rule. You would require income of $104,639 to afford a $500K home in Canada.
Source: CREA