Income needed for a 800,000 mortgage in Canada
A 800,000 mortgage does not have one fixed required salary in Canada. Qualification depends on the mortgage 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. Change the calculator inputs to test the mortgage amount against your own income, debt and housing costs.
Frequently asked questions
What income do I need for a 800,000 mortgage in Canada?
There is no single salary that applies to every borrower. 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 800,000 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%. Lenders may apply their own underwriting standards.
Does the mortgage stress test change the income needed?
Yes. Qualification at a rate above the contract rate can increase the income needed compared with a calculation based only on the payment at the contract rate. Federally regulated lenders generally use the higher of 5.25% or the contract rate plus 2 percentage points.
Do down payment and closing costs matter if the mortgage amount is fixed?
Yes. A mortgage amount is not the same as the home purchase price. Your down payment affects the purchase price and mortgage-insurance requirements, while closing costs require additional cash and should be budgeted separately.