Buying Power on $100K in 2025
Earning $100,000 is a solid income, but how far does it go in Canada's housing market? Let's break it down.
The Basic Calculation
Gross Debt Service (GDS) Ratio: Maximum 39%
- Mortgage payment
- Property taxes
- Heating costs
- 50% of condo fees
Total Debt Service (TDS) Ratio: Maximum 44%
GDS items PLUS all other debts.
Detailed Affordability Calculation
$100K Income, No Debts, 20% Down
At 5.25% stress test rate:
- Maximum mortgage: ~$472,000
- With 20% down: ~$590,000 home
City-by-City Buying Power
Toronto
| Property Type | Average Price | Affordable? | --------------- | -------------- | ------------- | Detached | $1,320,000 | ❌ No | Condo (1BR) | $580,000 | ✅ Yes |
Calgary |
Property Type | Average Price | Affordable? | --------------- | -------------- | ------------- | Detached | $685,000 | ❌ Stretch | Townhouse | $420,000 | ✅ Yes |
Ottawa |
Property Type | Average Price | Affordable? |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Townhouse | $540,000 | ✅ Yes | ||||||||||||||||||||||||||
| Condo | $425,000 | ✅ Yes |
Strategies for $100K Earners
In Expensive Cities (Toronto, Vancouver)
- Buy a condo first - Build equity, upgrade later
- Look to suburbs - Better value for space
- Consider income properties - Rent helps qualify
In Affordable Cities (Calgary, Ottawa, Montreal)
- Buy detached if possible - Better long-term appreciation
- Don't overextend - Buy below maximum for comfort
Frequently Asked Questions
Can I afford a house on $100K salary alone?
Yes, but location matters significantly. In Calgary or Montreal, you can buy a detached home. In Toronto or Vancouver, you're likely looking at condos.
How much should I spend on housing with $100K income?
Ideally, keep total housing costs under 35% of your gross income.
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