How much house can I afford on $240,000 a year in Canada?
A home up to about
$1,277,954
On $240,000 a year, you could afford a home up to about $1,277,954 with a 20% down payment of $255,591. The mortgage payment would be about $5,659 a month, or $6,610 with property tax and heating.
- Down payment
- $255,591
- Mortgage
- $1,022,363
- Payment a month
- $5,659
What it costs each month
| Mortgage payment | $5,659 |
| Property tax | $852 |
| Heating | $100 |
| Total | $6,610 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $52,852 (7%) | $778,520 | $754,695 | $4,177 |
| $111,887 (10%) | $1,118,867 | $1,038,196 | $5,746 |
| $255,591 (20%) | $1,277,954 | $1,022,363 | $5,659 |
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 $240,000, that's $7,800 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 $240,000 a year in Canada?
On $240,000 a year, you could afford a home up to about $1,277,954 with a 20% down payment of $255,591. The mortgage payment would be about $5,659 a month, or $6,610 with property tax and heating.
How much down payment do I need on $240,000?
With $52,852 saved, you could buy a home up to about $778,520. With $111,887 saved, you could buy a home up to about $1,118,867. With $255,591 saved, you could buy a home up to about $1,277,954.