Christopher Liew: How much income do you require to become a homeowner in Canada?
BNN Bloomberg
Personal finance contributor Christopher Liew explains how much you should be earning to afford a home and outline some other key considerations that you should keep in mind.
An increasing number of people in their 20s and 30s are beginning to feel that homeownership is out of reach. Home prices remain high, mortgage rates are still elevated compared to a few years ago, and other daily living costs continue to squeeze household budgets.
Between all of these pressures, prospective home buyers are wondering how much income they need to realistically afford to buy their home. Aside from the affordability of the listing price itself, there are also a number of other factors to consider, including the shopper’s debt-to-income ratio, credit profile, and future life plans.
Below, I’ll help explain how much you should be earning to afford a home and outline some other key considerations that you should keep in mind to help determine how much home you can afford.
There’s no single number that applies to everyone. However, the Canada Mortgage and Housing Corporation (CMHC) recommends that housing costs should generally stay below 30 per cent of your gross household income. That includes:
The Canadian Real Estate Association reports that it expects the average home price in Canada for 2026 to jump incrementally to $698,881.
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