The Real Cost of Owning a Home in Canada
The mortgage payment is only part of owning a home. Lenders and CMHC both look at your full shelter costs.
What lenders count
Gross debt service includes the mortgage payment at the qualifying rate, property tax, heating and 50% of condo fees, at most 39% of gross income.
CMHC's affordability benchmark
CMHC considers housing affordable when it costs less than 30% of before-tax household income.
Costs lenders don't count
- Maintenance and repairs
- Home insurance
- Utilities other than heating
- Rate changes at renewal
One-time costs
Closing costs such as legal fees (from about $500), inspection (about $500) and land transfer taxes. At renewal, federally regulated lenders must give you at least 21 days' notice.
Today's borrowing costs
On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.
The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).
Estimate your monthly budget
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Highest price that meets the guidelines
$701,600
At the 6.12% stress-test rate
Monthly mortgage payment at your rate
$3,303.11
Mortgage $620,250
| Ratio | Yours | Guideline |
|---|---|---|
| Gross debt service (GDS) | 39.0% | 39% |
| Total debt service (TDS) | 42.4% | 44% |
Estimate only, based on the published rules listed below. Lenders, insurers and tax authorities apply their own criteria.
Frequently asked questions
How much should I set aside for maintenance?
It depends on the home's age, size and condition. Older houses and homes with ageing roofs, windows or heating systems need larger reserves; condo owners pay much of this through fees.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.