The percentage of income that should be dedicated to a mortgage in Canada is typically guided by the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. The GDS ratio suggests that ideally, no more than 32% of the gross annual income should be spent on ‘PITH’ – Principal and interest of the mortgage, Property taxes, heating expenses, and half of condominium fees if applicable. The TDS ratio recommends that no more than 40%-42% of the gross annual income should be dedicated to all debt obligations, including mortgage payments and other debts like car loans, credit cards, or personal loans. However, these are guidelines, not strict rules. Each individual’s down payment, interest rates, credit score, lifestyle, and aspirations will contribute to determining the suitable mortgage-income percentage. Hence, finding the right balance is crucial for a sustainable homeownership journey.