Skip to main content

Ontario Mortgage Affordability Calculator (Updated August 2026)

Updated

Maximum Home Price

How much house can you afford in Ontario?

Ontario’s provincial MLS HPI composite benchmark was $746,800 in July 2026, down 3.8% year-over-year, with apartments (-6.8%) and townhouses (-6.0%) falling faster than single-family homes (-3.6%). The most recent full sales breakdown (March 2026) put the average home price at $811,868 (-4.8% YoY). Affordability varies more across Ontario than perhaps any other province — from well under $400,000 in Northern Ontario to over $1 million in the GTA, where the average has actually risen to $1,003,956.

Ontario affordability by income and region

Estimates based on 20% down payment, a 4.5% contract rate (stress tested at 6.5%), 25-year amortization, and no other debts. These are ballpark figures — use the calculator above for your exact numbers.

Annual Income Max Home Price Monthly Payment Where You Can Buy
$90,000 ~$460,000 $2,250 Northern Ontario
$130,000 ~$670,000 $3,290 Eastern Ontario, London ($627,112)
$140,000 ~$720,000 $3,540 Western Ontario, Waterloo Region
$176,000 ~$900,000 $4,435 Provincial average ($811,868)
$210,000+ ~$1,080,000+ $5,320+ GTA ($1,003,956), City of Toronto ($1,010,836)

What $100,000 in household income actually buys across Ontario — July 2026 benchmark data

Region July 2026 Benchmark/Avg YoY Affordable? What You Get
Northern Ontario ~$365,000 Stable Yes — well under budget 3-bed detached
London $554,900 -4.1% Tight — near max Entry-level home or townhouse
Niagara Region $572,200 -5.5% Tight — near max Townhouse in St. Catharines
Waterloo Region (KW) $636,000 -5.7% No — needs ~$150K Apartment may work
Ottawa $634,000 -0.5% No — needs ~$150K Apartment ($388,307-range) is comfortable
Barrie $696,100 -6.1% No — needs ~$165K Condo is more realistic
Hamilton $728,200 -5.1% No — needs ~$170K Condo is more realistic
GTA (Toronto) $1,003,956 -4.54% No — needs $210K+ Would need dual high incomes

Ontario land transfer tax impact on affordability

Ontario’s LTT is a sliding scale. First-time buyers get a rebate of up to $4,000. Toronto buyers pay a second municipal LTT (see Toronto affordability).

Home Price Ontario LTT After FTB Rebate % of Down Payment (10%)
$400,000 $4,475 $475 11.2%
$600,000 $8,475 $4,475 14.1%
$811,868 (ON avg) $12,451 $8,451 15.3%
$1,003,956 (GTA avg) $16,054 $12,054 16.0%

Ontario property tax rates vary widely

Higher property taxes reduce your maximum affordable home price because lenders include them in the GDS ratio.

City Property Tax Rate Annual Tax on $600K Home
Toronto 0.67% $4,020
Ottawa 1.02% $6,120
Hamilton 1.28% $7,680
London 1.34% $8,040
Windsor 1.81% $10,860

A Windsor homeowner pays 2.7x more property tax than a Toronto homeowner on the same-priced home — significantly reducing borrowing capacity.

Ontario market conditions

Metric July 2026 (HPI benchmark) March 2026 (most recent full breakdown)
Composite price $746,800 (-3.8% YoY) $811,868 avg (-4.8% YoY)
Single-family $829,500 (-3.6% YoY) —
Townhouse $585,300 (-6.0% YoY) —
Apartment $488,100 (-6.8% YoY) —
Total sales — 12,424 (-0.2% YoY)
Months of supply — 4.6
Sales-to-new-listings ratio — 36.3%
Market condition — Balanced to buyer’s

For the full monthly breakdown, see the Ontario housing market report.

Why the mortgage stress test hits Ontario buyers harder than most provinces

The federal stress test qualifies you at the higher of your contract rate plus 2%, or 5.25% — currently 6.5% for most Ontario buyers on a 4.5% rate. That 2-point buffer matters more in dollar terms as prices rise: on a $400,000 home it adds roughly $47,000 to the income needed to qualify; on the GTA average of $1,003,956, the same 2-point buffer adds closer to $118,000 in required income. Since Ontario has both Canada’s highest average price and one of its lowest average incomes relative to that price, the stress test effectively removes more GTA buyers from the market than it does in lower-priced provinces like Alberta or Manitoba, where the same 2-point buffer is a smaller share of the qualifying income.

Tips for Ontario homebuyers

  1. Consider where, not just how much — A $100K income buys comfortably in Northern Ontario but doesn’t clear the bar for most GTA condos
  2. Prices are still falling in most segments — Apartments (-6.8%) and townhouses (-6.0%) are down more than single-family homes (-3.6%), so condo buyers have more negotiating room
  3. Property tax rates vary 3x — Factor this into lender qualification, not just purchase price
  4. First-time buyer LTT rebate — Save up to $4,000 provincial (plus $4,475 in Toronto)
  5. Compare mortgage rates — On the $811,868 provincial average, 0.25% saves roughly $125/month

First-time buyer programs in Ontario

Program Benefit Notes
Ontario FTB LTT Rebate Up to $4,000 rebate Fully offsets LTT on homes under $368,000
Toronto FTB Municipal LTT Rebate Up to $4,475 additional rebate Toronto buyers only
FHSA Up to $40,000 tax-deductible savings Essential in Ontario’s high-price market
RRSP Home Buyers’ Plan Up to $60,000/person ($120,000/couple) Repay over 15 years
CMHC insurance 5% minimum down on homes under $1.5M Common for condos and townhomes
GST/HST New Housing Rebate Partial HST rebate on new builds 13% HST applies in Ontario

Ontario’s LTT rebate is most valuable in smaller Ontario cities where home prices overlap with the rebate threshold ($368,000). In the GTA, the rebate covers a small fraction of the LTT, but it’s still meaningful free money.