How much house can I afford on $120,000 a year in Canada?
A home up to about
$630,678
On $120,000 a year, you could afford a home up to about $630,678 with a 20% down payment of $126,136. The mortgage payment would be about $2,793 a month, or $3,313 with property tax and heating.
- Down payment
- $126,136
- Mortgage
- $504,542
- Payment a month
- $2,793
What it costs each month
| Mortgage payment | $2,793 |
| Property tax | $420 |
| Heating | $100 |
| Total | $3,313 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $26,083 (5%) | $510,830 | $504,137 | $2,790 |
| $55,217 (10%) | $552,168 | $512,356 | $2,836 |
| $126,136 (20%) | $630,678 | $504,542 | $2,793 |
How it’s worked out
Lenders qualify you at the stress test rate, the higher of your rate plus 2% or 5.25% (6.50% here). Your housing costs at that rate can be up to 39% of your gross income, and all your debt payments up to 44%. On $120,000, that's $3,900 a month for housing.
Assumes no other debts, a 25-year amortization, 0.8% property tax and $100 a month heating, with the stress test and the GDS and TDS limits. New uninsured fixed-rate mortgages of 5 years or more averaged 4.49% in July 2026 (Bank of Canada).
- You qualify at the stress test rate: the higher of your rate plus 2% or 5.25%. Your actual payment uses your real rate.
- Housing costs (mortgage at the stress test rate, property tax, heating and half of any condo fees) can be up to 39% of gross income, and all debt payments up to 44%.
- With less than 20% down, the CMHC premium is added to your mortgage. Heating is an estimate; lenders use your actual costs.
Frequently asked questions
How much house can I afford on $120,000 a year in Canada?
On $120,000 a year, you could afford a home up to about $630,678 with a 20% down payment of $126,136. The mortgage payment would be about $2,793 a month, or $3,313 with property tax and heating.
How much down payment do I need on $120,000?
With $26,083 saved, you could buy a home up to about $510,830. With $55,217 saved, you could buy a home up to about $552,168. With $126,136 saved, you could buy a home up to about $630,678.