What Mortgage Can I Get With $90,000 Salary in Canada? (in 2025)
If you're earning $90,000 a year in Canada in 2025, you may be wondering how much house you can afford and what kind of mortgage you can qualify for. The short answer: you could potentially afford a mortgage of around $350,000, depending on a number of factors like your debt load, credit score, down payment, and the current interest rates.
This article will walk you through the key elements that affect your mortgage affordability, how lenders make decisions, and how to maximize your borrowing potential while staying within a comfortable budget.
Understanding Mortgage Affordability in Canada
Mortgage affordability isn't just about how much you earn—it's about how much of your income lenders think you can safely commit to housing and debt payments. The Canada Mortgage and Housing Corporation (CMHC) and other lenders use specific affordability ratios to evaluate this:
1. Gross Debt Service (GDS) Ratio
The GDS ratio is the percentage of your gross monthly income that goes toward housing costs. This includes your mortgage principal and interest, property taxes, heating, and (if applicable) half of condo fees.
For insured mortgages in Canada, CMHC recommends a maximum GDS ratio of 39%.
For a $90,000 salary (which breaks down to $7,500 per month), this means your housing costs shouldn't exceed $2,925 per month.
2. Total Debt Service (TDS) Ratio
The TDS ratio includes all of your debt obligations, not just housing. This might include car payments, student loans, credit card payments, or other loans.
The CMHC guideline is a maximum TDS ratio of 44%.
That means your total debt payments (housing + other debt) should be no more than $3,300/month on a $7,500 gross monthly income.
How Much Mortgage Can You Get With a $90K Salary?
Let’s look at a rough breakdown assuming:
You have no other debts (so your TDS and GDS are the same).
You can afford monthly mortgage payments of around $2,400 to $2,900.
You're applying for a 30-year mortgage with a 6.5% fixed interest rate.
Using a mortgage calculator, this would translate to:
A mortgage of around $325,000 to $375,000.
With a 5% to 20% down payment, you could be looking at a total home price in the range of $350,000 to $450,000, depending on your situation.
Important Note: These are estimates. Every lender evaluates applications slightly differently, and your credit score, interest rate, and existing financial obligations can all significantly impact your final approved amount.
Key Factors That Affect How Much Mortgage You Can Get
Even with a strong income, other financial factors can dramatically affect your mortgage eligibility. Here are the big ones:
1. Your Down Payment
The size of your down payment not only affects how much you need to borrow—it also affects your monthly payments and whether or not you'll have to pay mortgage default insurance.
Minimum down payment in Canada:
5% on the first $500,000
10% on the portion above $500,000
If your down payment is less than 20%, mortgage default insurance is mandatory.
A larger down payment means a smaller mortgage, lower payments, and lower interest over the lifetime of the loan.
2. Interest Rates
Interest rates directly impact your monthly payments. At 6.5%, your mortgage payments will be considerably higher than they would be at 4% or lower.
Tip: If rates drop in the future, you may be able to refinance for better terms.
3. Other Debt Obligations
If you have outstanding debts—such as a car loan, student loan, or credit card balances—your TDS ratio will increase, reducing the mortgage amount you can be approved for.
Example:
If you pay $500/month toward other debts, your maximum allowable mortgage payment drops from $2,925 to around $2,425, which significantly affects your total borrowing amount.
4. Credit Score
A high credit score improves your chances of being approved and getting a better interest rate. Generally:
Scores above 680 are considered good by most lenders.
Scores below 600 may require alternative lenders and higher interest rates.
Maintaining good credit gives you more flexibility and savings over time.
Example Scenario: Mortgage on $90,000 Salary
Let’s put it all together with a simple example:
John makes $90,000/year, has no other debt, and has $50,000 saved for a down payment.
He applies for a 30-year mortgage at 6.5% interest.
With a $2,400 monthly housing budget, he qualifies for a mortgage of $350,000.
Adding his $50,000 down payment, he can afford a $400,000 home.
His total monthly payments (including property taxes and insurance) are just under $2,900, keeping him within CMHC guidelines.
If John had $500/month in other debt, his affordable mortgage would drop to around $300,000, limiting his home purchase price unless he increases his down payment.
Tips to Maximize Your Mortgage Potential
Here are a few ways to improve your mortgage affordability and get more value for your money:
Pay down your debts – Reducing credit card or car loan payments frees up more of your income.
Save for a larger down payment – This decreases your mortgage size and monthly payments.
Improve your credit score – Pay bills on time and reduce balances to build a strong credit profile.
Get pre-approved – Mortgage pre-approval gives you a realistic view of your price range before house hunting.
Shop around for interest rates – Even a 0.5% difference can save thousands over the term of your mortgage.
Consider a longer amortization – A 30-year amortization lowers your monthly payment compared to a 25-year plan, though you’ll pay more interest in the long run.
Final Thoughts
A $90,000 salary in Canada puts you in a solid position to become a homeowner. While your estimated mortgage eligibility might land around $350,000, the actual number depends on your overall financial picture—especially your debt, down payment, and interest rate.
To get the most accurate answer, consider using an online mortgage affordability calculator, and always consult a licensed mortgage broker or financial advisor who can guide you through the process and help you get pre-approved.
Homeownership is more than just hitting a number—it's about building long-term financial stability. Make sure you choose a mortgage that fits not just your income, but your goals, your comfort level, and your future.
