Financial Glossary
Mortgage Affordability
Mortgage affordability refers to how much home you can reasonably purchase based on your income, existing debts, down payment, and current interest rates. Lenders use the 28/36 rule: no more than 28% of gross monthly income for housing costs and no more than 36% for total debt payments. Your credit score and employment history also affect affordability.
Example
With a $75,000 annual salary ($6,250/month), no other debts, and a 20% down payment, you can afford approximately $2,500 monthly housing costs. At current interest rates, this translates to a home price of roughly $350,000-$400,000 depending on property taxes and insurance.
Frequently Asked Questions
How much house can I afford with a $75,000 salary?
With a $75,000 salary, zero debt, and 20% down, you can typically afford a home between $350,000 and $400,000. Your actual affordable price depends on interest rates, property taxes, insurance, and HOA fees. Use our mortgage calculator for a personalized estimate.
What is the 28/36 rule?
The 28/36 rule states that no more than 28% of your gross monthly income should go to housing costs, and no more than 36% should go to total debt payments including housing. This is a guideline lenders use to determine mortgage approval and affordable loan amounts.
Related Resources
Official Sources
Canada calculators use data from the following official government agencies:
- Canada Revenue Agency (CRA) — Federal and provincial income tax rates, CPP contributions, and RRSP limits.
- Statistics Canada — Employment data, income statistics, and housing market data.
- Bank of Canada — Interest rates, inflation data, and mortgage rate benchmarks.
Methodology
Our Canadian calculators use federal and provincial tax brackets, CPP/QPP contribution rates, and EI premiums published by the Canada Revenue Agency (CRA). Economic data is sourced from Statistics Canada. Mortgage calculations use Bank of Canada rates and market averages. All figures are for educational purposes.
Data Sources
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.
Last Updated: June 2026 — Reviewed Against Official Sources