How Much House Can I Afford in Ontario? | Ridge Estate

by Ross Mogridge

How Much House Can I Afford in Ontario?

Figuring out how much home you can afford is one of the most important steps in your buying journey. Getting this wrong can lead to disappointment—or worse, financial strain.

Here’s how the math works in Ontario:

- Lenders use your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine your affordability.
- As a rule of thumb: keep total housing costs under 32% of your gross monthly income.
- Your TDS (housing + other debts) should stay below 40% of your income.

This includes mortgage principal + interest, property taxes, and heating costs. Condo buyers must also include 50% of condo fees in their ratio.

Don't forget to include costs like home insurance, repairs, and unexpected expenses.

💡 Ridge Pro Tip: Use a mortgage calculator *after* you’ve accounted for lifestyle expenses, not before. Real affordability is about comfort, not just approval.

🔗 Related Articles: First-Time Buyer Incentives and Rebates, Closing Costs You Should Expect

📊 Ridge Estate helps you run real numbers—not just bank numbers. Let’s build your custom affordability plan together.