Your Maximum Home Price
The maximum home price that you can afford depends on a number of factors but the most important are your gross household income, your Down Payment and the Mortgage interest rate.
This table gives you an idea of the maximum home price you can afford.
Income, Home Price and Down Payment Guide
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Related CMHC Information
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This table assumes a mortgage interest rate of 8%, average tax and heating costs in Canada, and the mortgage an average Canadian would qualify for based on a 32% debt service ratio.
For most people the hardest part of buying a home — especially the first one — is saving the necessary down payment. Many people will not have the traditional 25% of the purchase price to put down. With mortgage loan insurance, you can put as little as 5% down. Mortgage loan insurance protects the lender and, by law, most Canadian lending institutions require it. The way it works is if the borrower defaults (fails to pay) on the mortgage, the lender is paid back by the insurer. The cost for this type of insurance is in the form of a premium and can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.
CMHC is a major provider of this type of insurance in Canada and its current loan premiums are as follows:
| Financing Required |
Premium % of Loan Amount |
| Up to and including 65% |
0.50 |
| Up to and including 75% |
0.65 |
| Up to and including 80% |
1.00 |
| Up to and including 85% |
1.75 |
| Up to and including 90% |
2.00 |
Between 90.01 and 95%
Traditional Down Payment 3.25
Flex Down |
3.25
3.40 |
Secured Line of Credit Surcharge
Non-amortized repayment option:
5 years
10 years |
0.25
3.40 |
*Premiums in Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount. maximuma culator mortgage calculator   | |
