Ontario is Canada’s most populated province and home to some of the country’s most expensive — and most affordable — housing markets. The income needed to buy a home varies dramatically depending on whether you are looking in downtown Toronto or northern Ontario.
This guide breaks down the real numbers across Ontario’s major cities as of 2026.
Ontario housing market overview
| City / Region | Average Home Price | Average Detached | Average Condo |
|---|---|---|---|
| Toronto (GTA) | $1,050,000 | $1,350,000 | $640,000 |
| Ottawa | $650,000 | $750,000 | $420,000 |
| Hamilton | $750,000 | $820,000 | $480,000 |
| Kitchener-Waterloo | $700,000 | $780,000 | $440,000 |
| London | $580,000 | $630,000 | $370,000 |
| Barrie | $680,000 | $740,000 | $430,000 |
| Kingston | $530,000 | $580,000 | $360,000 |
| Windsor | $450,000 | $480,000 | $300,000 |
| Sudbury | $370,000 | $390,000 | $250,000 |
| Thunder Bay | $290,000 | $310,000 | $200,000 |
Income needed by city (20% down payment)
The table below shows the approximate household income required to buy an average-priced home in each city with 20% down, minimal existing debt, at a 4.5% mortgage rate with 25-year amortization.
| City | Average Price | Mortgage (80%) | Monthly Payment | Property Tax/mo | Income Needed |
|---|---|---|---|---|---|
| Toronto (GTA) | $1,050,000 | $840,000 | $4,620 | $586 | ~$195,000 |
| Ottawa | $650,000 | $520,000 | $2,860 | $580 | ~$130,000 |
| Hamilton | $750,000 | $600,000 | $3,300 | $655 | ~$150,000 |
| Kitchener-Waterloo | $700,000 | $560,000 | $3,080 | $630 | ~$140,000 |
| London | $580,000 | $464,000 | $2,553 | $538 | ~$117,000 |
| Barrie | $680,000 | $544,000 | $2,992 | $544 | ~$134,000 |
| Kingston | $530,000 | $424,000 | $2,332 | $530 | ~$108,000 |
| Windsor | $450,000 | $360,000 | $1,980 | $495 | ~$94,000 |
| Sudbury | $370,000 | $296,000 | $1,628 | $444 | ~$79,000 |
| Thunder Bay | $290,000 | $232,000 | $1,276 | $377 | ~$63,000 |
How we calculated: Monthly housing costs (mortgage + property tax + heating estimate of $175) divided by 0.39 (GDS ratio limit) × 12 months. Stress-tested at contract rate + 2%.
Income needed with 5% down payment
With a smaller down payment, you need CMHC mortgage insurance and a larger mortgage — meaning you need more income.
| City | Average Price | CMHC Premium | Income Needed (5% down) | Income Needed (20% down) |
|---|---|---|---|---|
| Toronto (GTA) | $1,050,000 | N/A (>$1M requires 20% min) | N/A | ~$195,000 |
| Ottawa | $650,000 | ~$22,800 | ~$155,000 | ~$130,000 |
| Hamilton | $750,000 | ~$26,600 | ~$178,000 | ~$150,000 |
| London | $580,000 | ~$20,300 | ~$140,000 | ~$117,000 |
| Windsor | $450,000 | ~$15,400 | ~$112,000 | ~$94,000 |
| Sudbury | $370,000 | ~$12,500 | ~$94,000 | ~$79,000 |
| Thunder Bay | $290,000 | ~$9,700 | ~$75,000 | ~$63,000 |
Note: Homes priced above $1 million require a minimum 20% down payment. Between $500,000 and $1 million, you need 5% on the first $500,000 and 10% on the remainder.
How existing debt affects the income you need
The TDS ratio (44% limit) means existing debts directly reduce your borrowing capacity.
| Monthly Debt | Additional Income Needed |
|---|---|
| $300 (minimum credit card payments) | +$8,200/year |
| $500 (car payment) | +$13,600/year |
| $800 (car + student loan) | +$21,800/year |
| $1,200 (car + student loan + line of credit) | +$32,700/year |
Example: Buying in Ottawa ($650,000, 20% down) with a $500/month car payment requires roughly $143,600 instead of $130,000.
Ontario-specific costs that affect affordability
Land transfer tax
Ontario charges a tiered land transfer tax:
| Value Range | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,001–$250,000 | 1.0% |
| $250,001–$400,000 | 1.5% |
| $400,001–$2,000,000 | 2.0% |
| Above $2,000,000 | 2.5% |
Toronto buyers pay an additional municipal land transfer tax at similar rates, roughly doubling the total.
First-time buyers get rebates of up to $4,000 (provincial) and $4,475 (Toronto municipal).
Property tax variation
Ontario property tax rates vary significantly by municipality:
| City | Approximate Tax Rate |
|---|---|
| Toronto | 0.67% |
| Ottawa | 1.07% |
| Hamilton | 1.05% |
| London | 1.11% |
| Windsor | 1.32% |
| Thunder Bay | 1.56% |
Lower-priced cities often have higher tax rates, which partially offsets their affordability advantage.
Strategies to buy in Ontario on a lower income
Target affordable cities
If you can work remotely, cities like Kingston, Windsor, Sudbury, and Thunder Bay offer detached homes at prices that require household incomes of $65,000–$110,000.
Use the First Home Savings Account (FHSA)
The FHSA lets you save up to $40,000 tax-free for your first home, giving you a larger down payment and reducing the income you need.
House-hack with a rental suite
Some Ontario municipalities now permit secondary suites. Rental income from a basement apartment can be factored into your mortgage application (typically 50–80% of market rent), potentially adding $30,000–$50,000 to your qualifying income.
Buy with a partner or co-buyer
Two incomes dramatically improve affordability. A couple earning $75,000 each ($150,000 combined) can qualify for homes in most Ontario cities outside Toronto.
Related resources
- How Much House Can I Afford? — Calculate your maximum purchase price
- Mortgage Affordability Calculator — See what mortgage you qualify for
- Income Needed to Buy a Home in Toronto — Toronto-specific breakdown
- Income Needed to Buy a Home in Ottawa — Ottawa-specific breakdown
- First-Time Home Buyer Guide — Programs and incentives
- Land Transfer Tax Calculator — Calculate your Ontario and Toronto LTT
- Rent vs Buy in Toronto — Should you rent or buy?
- Down Payment Guide — How much do you need to save?
- Toronto Housing Market — Current prices and market conditions
- Mississauga Housing Market — Peel Region prices
- Hamilton Housing Market — Golden Horseshoe prices
- Ottawa Housing Market — Capital city prices
- Ontario Housing Market — Provincial price overview