Income Needed to Buy a Home Jumps Again in Greater Toronto Area

First-time buyers now need over $185K a year to afford the average home

If you’re hoping to buy a home in the Greater Toronto Area, brace yourself: the income needed to qualify for an average mortgage in the region just hit a new high of $185,000+, according to fresh broker estimates and Ratehub data.
This marks a sharp rise from previous years, when incomes of around $150K were enough to qualify for similar properties. But with still-high interest rates and no significant drop in home prices, affordability continues to erode — even as market activity remains soft.

“Many buyers are shocked when they see the numbers,” says a Mississauga-based mortgage advisor. “Even those making six figures are struggling to get approved without a co-applicant.”

Why It’s Getting Harder to Qualify

Three major pressures are squeezing affordability in the GTA:

1. Interest Rates Are Still Elevated:
   With the BoC holding its overnight rate at 5%, lenders continue to stress test borrowers at 7%+.
2. Home Prices Haven’t Dropped Enough:
   GTA home prices are sticky — still hovering above $1 million in many suburbs.
3. Stress Test Stays Tough:
   The minimum qualifying rate remains the greater of 5.25% or your contract rate + 2%. This means buyers must prove they can carry payments at rates far higher than they’ll actually pay.

What First-Time Buyers Can Do

Don’t give up just yet. Many buyers are finding creative ways to improve their approval odds:

• Buying with a co-applicant (spouse, sibling, friend)
• Extending amortization to 30 or even 35 years
• Switching to a variable or hybrid mortgage for lower initial payments
• Looking just outside the core GTA, where prices and qualifying income drop

“Approval is all about ratios — not just how much you earn, but how your debts stack up,” says one broker.

Mortgage.Expert Verdict

With affordability continuing to erode across the country, you might want to read more on affordability & income requirements to understand what’s driving the increase in monthly housing costs.
If your household income is under $180,000, the GTA may feel out of reach — but you still have options. A mortgage expert can help you restructure debts, boost approval odds, and find homes within your qualifying range.