How much home can I afford in Ontario?
See the price range a lender may approve, your monthly costs and the cash you’ll need at closing, including land transfer tax and first-time buyer rebates.
How much house can I afford on a $120,000 income in Ontario?
It depends on your debts, down payment and rate. As of October 2026, with $120,000 in household income, $400 a month in other debt payments, $75,000 down and a 4.49% rate over 25 years, you may qualify for a home up to about $558,000: a $497,973 mortgage, including CMHC insurance, at about $2,753 a month. Lenders test you at 6.49% (the higher of 5.25% or your rate plus 2%) and cap housing costs at 39% of income and all debts at 44%. A bigger down payment or fewer debts raise the limit.
Example uses the calculator’s starting values below, with rules as of October 2026. Change any number to see your own result.
$497,973 mortgage · $2,753/month at 4.49%
Lender limits: GDS 39%, TDS 44% (dashed line), tested at —.
| Mortgage payment | — |
|---|---|
| Property tax | — |
| Heating | — |
| Condo fees | — |
| Total housing cost | — |
| Purchase price | — |
|---|---|
| Down payment | — |
| CMHC insurance (added to mortgage) | — |
| Total mortgage | — |
| Down payment | — |
|---|---|
| Ontario land transfer tax | — |
| Toronto land transfer tax | — |
| First-time buyer rebates | — |
| 8% Ontario PST on CMHC premium | — |
| Legal & other closing costs | — |
| Total cash needed | — |
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- Stress test: lenders qualify you at the higher of 5.25% or your rate plus 2 percentage points.
- Debt ratios: housing costs (mortgage payment at the stress-test rate, property tax, heating and half of condo fees) must stay within 39% of gross income (GDS). Housing costs plus other debts must stay within 44% (TDS).
- Down payment: minimum 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. Homes of $1.5 million or more need 20%.
- CMHC insurance: required with less than 20% down, and only for homes under $1.5 million. Premiums run 2.80%–4.00% of the mortgage depending on your down payment, plus 0.20% for a 30-year amortization. The premium is added to the mortgage; Ontario’s 8% PST on it is paid in cash at closing.
- 30-year amortization: with less than 20% down, available to first-time buyers and buyers of new builds. Otherwise insured mortgages are limited to 25 years.
- Land transfer tax: Ontario rates from 0.5% to 2.5%. Toronto adds its own municipal tax. First-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto.
- Payments use Canadian semi-annual compounding. Your lender’s figures may differ slightly.
These calculators are for general information only and produce estimates. They are not a pre-qualification, mortgage approval or commitment to lend, and are not financial, legal or tax advice. Rules shown were checked in October 2026 and can change; lender and insurer policies vary. Confirm details for your situation before making decisions.
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