How much house can I afford on $225,000 a year in Canada?
A home up to about
$1,197,044
On $225,000 a year, you could afford a home up to about $1,197,044 with a 20% down payment of $239,409. The mortgage payment would be about $5,300 a month, or $6,198 with property tax and heating.
- Down payment
- $239,409
- Mortgage
- $957,635
- Payment a month
- $5,300
What it costs each month
| Mortgage payment | $5,300 |
| Property tax | $798 |
| Heating | $100 |
| Total | $6,198 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $49,506 (7%) | $745,060 | $723,376 | $4,004 |
| $104,803 (10%) | $1,048,029 | $972,466 | $5,382 |
| $239,409 (20%) | $1,197,044 | $957,635 | $5,300 |
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 $225,000, that's $7,313 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 $225,000 a year in Canada?
On $225,000 a year, you could afford a home up to about $1,197,044 with a 20% down payment of $239,409. The mortgage payment would be about $5,300 a month, or $6,198 with property tax and heating.
How much down payment do I need on $225,000?
With $49,506 saved, you could buy a home up to about $745,060. With $104,803 saved, you could buy a home up to about $1,048,029. With $239,409 saved, you could buy a home up to about $1,197,044.