Estimated monthly carrying costs and qualification barriers by city
Based on 20% down payment, 4.55% interest rate, 25-year amortization. High-performance static visualization.
This analysis estimates the monthly principal and interest payment for an average-priced home. It provides a baseline for "entry-level" affordability for median households.
Purchasing Power: Every 1% increase in mortgage rates typically reduces a buyer's purchasing power by roughly **10%**.
The Stress Test: OSFI requires buyers to qualify at the contract rate plus 2%. At a 5% rate, you must prove you can afford payments at **7%**.
Carrying Costs: Higher rates mean a larger portion of your monthly payment goes to interest rather than building equity.
| City | Avg Home Price | 20% Down | Est. Payment |
|---|---|---|---|
| Vancouver | $1,185,000 | $237,000 | $5,350/mo |
| Toronto | $1,085,000 | $217,000 | $4,899/mo |
| Victoria | $910,000 | $182,000 | $4,109/mo |
| Kelowna | $795,000 | $159,000 | $3,589/mo |
| Hamilton | $795,000 | $159,000 | $3,589/mo |
| Kitchener-Waterloo | $735,000 | $147,000 | $3,319/mo |
| Ottawa | $675,000 | $135,000 | $3,048/mo |
| Calgary | $635,000 | $127,000 | $2,867/mo |
| London | $615,000 | $123,000 | $2,777/mo |
| Halifax | $595,000 | $119,000 | $2,686/mo |
| Montreal | $585,000 | $117,000 | $2,641/mo |
| Whitehorse | $575,000 | $115,000 | $2,596/mo |
| Iqaluit | $565,000 | $113,000 | $2,551/mo |
| Yellowknife | $495,000 | $99,000 | $2,235/mo |
| Edmonton | $445,000 | $89,000 | $2,009/mo |
| Charlottetown | $435,000 | $87,000 | $1,964/mo |
| Quebec City | $415,000 | $83,000 | $1,874/mo |
| Saskatoon | $405,000 | $81,000 | $1,829/mo |
| Moncton | $395,000 | $79,000 | $1,783/mo |
| Winnipeg | $375,000 | $75,000 | $1,693/mo |
| Regina | $355,000 | $71,000 | $1,603/mo |
| St. John's | $335,000 | $67,000 | $1,513/mo |
| Saint John | $315,000 | $63,000 | $1,422/mo |
In Canada's peak-priced markets like Vancouver, an average monthly mortgage payment surpasses **$6,500**. For a household to remain under the recommended 32% Gross Debt Service (GDS) ratio, they would need a pre-tax annual income of over **$240,000**.
This creates a "borrowing barrier" where even high-income professionals—doctors, lawyers, and engineers—are priced out of the detached housing market in major urban centers unless they have massive amounts of existing home equity.
It is vital to remember that the mortgage payment is only the beginning. Total monthly carrying costs also include:
Canada has unusually short mortgage terms (typically 5 years) compared to the US (30 years). This makes our economy hypersensitive to interest rate changes.
If your down payment is less than 20%, you must pay CMHC mortgage insurance, which can add thousands to your total mortgage amount.
Calculate your specific payment