The Mortgage Store

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

 

Household Income	5% Down Payment	Maximum Home Price	10% Down Payment	Maximum Home Price	25% Down Payment	Maximum Home Price
$25,000	$3,000	$60,000	$6,300	$63,000	$18,900	$75,600
$30,000	$3,900	$78,000	$8,200	$82,000	$24,700	$98,800
$35,000	$4,800	$96,000	$10,100	$101,000	$30,300	$121,200
$40,000	$5,700	$114,000	$12,000	$120,000	$36,000	$144,000
$45,000	$6,600	$132,000	$13,900	$139,000	$41,700	$166,800
$50,000	$7,500	$150,000	$15,800	$158,000	$47,400	$189,600
$60,000	$9,300	$186,000	$19,600	$196,000	$58,800	$235,200
$70,000	$11,050	$221,000	$23,400	$234,000	$70,100	$280,400
$80,000	$12,500	$250,000	$27,200	$272,000	$81,500	$326,000
$90,000	$14,400	$288,000	$31,000	$310,000	$92,800	$371,200
$100,000	$16,275	$325,500	$34,800	$348,000	$104,300	$417,200

* Figures are rounded to the nearest $100.

Check out the Mortgage Calculator

 

Related CMHC Information

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 20% 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:

Borrower income qualification Premium rates*

LTV Ratio	Total Loan Amount	Top-up Portion
Up to 65%	0.50%	0.50%
65.01% - 75%	0.65%	2.25%
75.01% - 80%	1.00%	2.75%
80.01% - 85%	1.75%	3.50%
85.01% - 90%	2.00%	4.25%
90.01% - 95%	2.75%	4.25%
Premium is non-refundable.
* a 20 BPS premium surcharge will be applied to the above premium rates for every 5 years of amortization beyond the traditional 25-year mortgage amortization period.

 

 Business For Self  Premium rates:

LTV Ratio	Recommended Credit Scores	Purchase	Refinance	Top-Up Premium
85.01% - 90%	650	4.75%	N/A	7.00%
80.01% - 85%	620	2.90%	2.90%	5.50%
75.01% - 80%	620	1.64%	1.64%	3.85%
65.01% - 75%	620	1.00%	1.00%	2.60%
< 65%	620	0.80%	0.80%	1.50%
* A .20% premium surcharge will be applied for every 5 years of amortization beyond the traditional 25 - year mortgage amortization period

* Premiums in Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount. maximuma  mortgage calculator