Income needed for a $1,000,000 mortgage in Canada
A $1,000,000 mortgage does not have one fixed required salary in Canada. Qualification depends on the payment at the qualifying rate plus property taxes, heating, applicable condo fees and other debt. Federal consumer guidance uses 39% of gross household income as a general GDS ceiling and 44% as a general TDS ceiling. Federally regulated lenders also apply the mortgage stress test, generally using the higher of 5.25% or the contract rate plus 2 percentage points. Use the calculator to test your own income, debt and housing costs.
Frequently asked questions
What income do I need for a $1M mortgage in Canada?
There is no universal salary. The qualifying rate, amortization, property taxes, heating, condo fees and existing monthly debt all affect the income required.
How do GDS and TDS affect a $1M mortgage?
GDS compares qualifying housing costs with gross household income and generally should not exceed 39%. TDS adds other debt obligations and generally should not exceed 44%.
Does the mortgage stress test apply to a $1M mortgage?
Yes. Federally regulated lenders generally qualify borrowers at the higher of 5.25% or the contract mortgage rate plus 2 percentage points.
Is a $1M mortgage the same as buying a $1M home?
No. The mortgage is the financed amount after the down payment. Purchase price, down payment, mortgage-insurance eligibility and closing costs must be considered separately.