Income needed to afford a $1,000,000 home
To buy a $1,000,000 home in Canada, you typically need a household income of $190,000 to $225,000 per year.
Important: Homes priced at $1 million or more require at least 20% down payment. CMHC mortgage insurance is not available above this threshold.
| Down Payment | Mortgage Amount | Income Needed | Monthly Payment |
|---|---|---|---|
| 20% ($200,000) | $800,000 | ~$192,000 | ~$5,000 |
| 25% ($250,000) | $750,000 | ~$180,000 | ~$4,700 |
| 30% ($300,000) | $700,000 | ~$168,000 | ~$4,375 |
Monthly housing costs breakdown
| Expense | 20% Down | 25% Down |
|---|---|---|
| Mortgage payment | $5,000 | $4,700 |
| Property tax | $835 | $835 |
| Heating | $225 | $225 |
| Total | $6,060 | $5,760 |
At $192,000 income: $6,060 housing costs = 37.9% of gross monthly income ($16,000)
Where does $1 million buy a home?
| City | Median Home | $1M Buys… |
|---|---|---|
| Edmonton | ~$400,000 | Luxury home |
| Calgary | ~$550,000 | Premium home |
| Ottawa | ~$650,000 | Very nice detached |
| Hamilton | ~$750,000 | Good detached |
| Montréal | ~$525,000 | Premium home |
| Toronto | ~$1,100,000 | Starter detached / nice townhouse |
| Vancouver | ~$1,200,000 | Townhouse or decent condo |
Tips for affording a $1M home
- Save aggressively for down payment — The 20% minimum means you need $200,000+ saved
- Minimize other debts — Pay off car loans and credit cards before applying
- Consider a co-borrower — Combined household income makes qualification easier
- Look at nearby markets — $1M goes much further outside Toronto and Vancouver cores
Related pages
- Income Needed to Buy a Home — all price points
- How Much House on $200K Salary
- Mortgage Affordability Calculator
The mortgage stress test at $1,000,000
The stress test qualifies you at your contract rate + 2% (minimum 5.25%). At current contract rates of 4.5–5%, the stress test rate is 6.5–7%.
| Down Payment | Mortgage | Stress Test Rate | Qualifying Payment | Income Needed |
|---|---|---|---|---|
| 20% ($200K) | $800,000 | 6.5% | ~$5,537/mo | ~$192,000 |
| 25% ($250K) | $750,000 | 6.5% | ~$5,191/mo | ~$180,000 |
| 30% ($300K) | $700,000 | 6.5% | ~$4,845/mo | ~$168,000 |
At $1M+, there is no CMHC insurance and no 30-year amortization for uninsured mortgages (lenders typically cap at 25 years, though some offer 30-year amortization as a product feature with premium rates).
Why the $1M threshold matters
The $1,000,000 price point is a hard cut-off under the National Housing Act:
| Rule | Under $1M | $1M and over |
|---|---|---|
| Minimum down payment | 5–10% (tiered) | 20% required |
| CMHC insurance available | Yes | No |
| Maximum amortization (insured) | 30 years (as of Dec 2024) | N/A |
| Stress test applies | Yes | Yes |
Buying at $999,999 vs $1,000,000 saves $135,000 in required down payment and keeps CMHC available — a significant difference.
Total cash needed to close at $1,000,000
| Item | Amount |
|---|---|
| Minimum down payment | $200,000 |
| Legal fees | $2,000–$3,500 |
| Home inspection | $600–$900 |
| Land transfer tax — Ontario (est.) | ~$16,475 |
| Land transfer tax — Toronto (additional) | ~$16,475 |
| Title insurance | $500–$1,000 |
| Property tax adjustment | $3,000–$5,000 |
| Total cash (Toronto example) | ~$240,000–$245,000 |
| Total cash (Alberta example) | ~$208,000–$213,000 |
After-tax income picture at $1M affordability
If you need ~$192,000 in household income to qualify (20% down):
| Province | $192K Household Income — Take-Home (est.) |
|---|---|
| Alberta | ~$128,000/year (~$10,650/mo) |
| Ontario | ~$119,000/year (~$9,900/mo) |
| BC | ~$117,000/year (~$9,750/mo) |
| Quebec | ~$107,000/year (~$8,900/mo) |
At $9,900/month take-home and $6,060/month housing costs, housing takes up roughly 61% of take-home pay — feasible only in a dual-income household or with significant equity from a prior home.
Saving the $200,000 down payment
| Strategy | Contribution | Notes |
|---|---|---|
| FHSA (2 people) | $40,000 total | $8K/year each; tax-deductible |
| Home Buyers’ Plan (2 people) | Up to $120,000 | Withdraw $60K each from RRSP |
| TFSA | Room varies | Tax-free growth |
| Proceeds from prior home sale | Varies | Most common source for move-up buyers |
A dual-income first-time buyer couple could draw $40K from FHSA and $120K from RRSP (HBP) for $160,000 — still needing $40,000 in liquid savings to reach the full $200,000.