How much mortgage can I afford with a $100k salary in Canada?
In Canada, the “28/36 rule” is typically used to determine how much mortgage you can afford. It suggests that no more than 28% of your gross monthly income should go towards housing costs, and no more than 36% should go towards your total debt, including the mortgage. Therefore, with a $100,000 gross annual salary, which equates to approximately $8,333 monthly, you could potentially allocate up to $2,333 (28% of $8,333) per month towards housing costs, including mortgage payments, property taxes, heating, and half of condo fees if applicable. The exact mortgage amount would depend on factors such as the total debt load, interest rate, term length, property’s location, and personal comfort level with mortgage payments. Hence, careful consideration is needed to ensure affordability and financial stability in homeownership.