How much house can I afford on $85,000 a year in Canada?
A home up to about
$441,889
On $85,000 a year, you could afford a home up to about $441,889 with a 20% down payment of $88,378. The mortgage payment would be about $1,957 a month, or $2,351 with property tax and heating.
- Down payment
- $88,378
- Mortgage
- $353,511
- Payment a month
- $1,957
What it costs each month
| Mortgage payment | $1,957 |
| Property tax | $295 |
| Heating | $100 |
| Total | $2,351 |
|---|
How your down payment changes it
| Saved for a down payment | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $18,275 (5%) | $365,500 | $361,114 | $1,999 |
| $38,688 (10%) | $386,880 | $358,986 | $1,987 |
| $88,378 (20%) | $441,889 | $353,511 | $1,957 |
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 $85,000, that's $2,763 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 $85,000 a year in Canada?
On $85,000 a year, you could afford a home up to about $441,889 with a 20% down payment of $88,378. The mortgage payment would be about $1,957 a month, or $2,351 with property tax and heating.
How much down payment do I need on $85,000?
With $18,275 saved, you could buy a home up to about $365,500. With $38,688 saved, you could buy a home up to about $386,880. With $88,378 saved, you could buy a home up to about $441,889.