Before you start house hunting, the most important question is: how much can you actually afford?
Understanding your budget helps you avoid surprises and shop with confidence.
How much income do I need to buy a home?
It depends on:
Your income
Debt (loans, credit cards)
Interest rates
Down payment
💡 Rule of thumb: Your housing costs should be under 30–35% of your income
What is the stress test in Canada?
The mortgage stress test ensures you can afford payments if rates rise.
You must qualify at:
Your rate + 2% OR
The minimum qualifying rate (set by government)
What debts affect affordability?
Lenders look at:
Car loans
Credit cards
Student loans
Lines of credit
👉 Less debt = higher buying power
What is the minimum down payment?
5% for first $500K
10% for $500K–$999K
20% for $1M+
What are monthly home costs?
Besides your mortgage, consider:
Property taxes
Home insurance
Utilities
Maintenance
Can I get pre-approved online?
Yes — most lenders offer quick online pre-approvals.
👉 But working with a mortgage broker can get you better rates.