What Mortgage Can I Get With $70,000 Salary in Canada? (in 2025)
Hi there — I’m David Pipe, founder of WealthTrack. If you're earning $70,000 per year in Canada, you might be wondering how much mortgage you can qualify for in 2025's housing market. The answer? You’re likely looking at a mortgage between $250,000 and $300,000, depending on your debt, credit score, down payment, and current interest rates.
In a recent post, we explored mortgage options for a $90,000 salary in Canada. While $70,000 offers slightly less buying power, it's still enough to get into the market — especially if you’re smart about your financial planning.
Let’s walk through what lenders look at, how affordability is calculated, and how you can stretch your homebuying potential without overextending your budget.
TL;DR – 5 Key Things to Know About Getting a Mortgage on a $70K Salary in Canada (2025)
🏠 Expect a mortgage range of $250K–$300K, assuming minimal debt and a reasonable down payment.
📊 Lenders look at your GDS and TDS ratios — not just your salary — to decide how much you can borrow.
💸 Debt hurts your borrowing power — even $300/month in loan payments can shrink your mortgage eligibility by tens of thousands.
💰 A bigger down payment = more house — and can help you avoid costly mortgage default insurance.
🔍 Getting pre-approved and improving your credit are two of the most effective ways to boost what you qualify for.
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Understanding Mortgage Affordability in Canada
When you apply for a mortgage, your salary is only part of the equation. Lenders use two key affordability ratios to decide how much you can safely borrow: GDS (Gross Debt Service) and TDS (Total Debt Service).
1. Gross Debt Service (GDS) Ratio
This ratio looks at what percentage of your gross monthly income would go toward housing costs, including:
Mortgage principal + interest
Property taxes
Heating
Half of condo fees (if applicable)
The maximum GDS recommended by CMHC is 39%.
If you earn $70,000/year, that works out to a gross monthly income of about $5,833.
39% of that is $2,275/month — that’s the max housing cost most lenders will accept under GDS.
2. Total Debt Service (TDS) Ratio
TDS accounts for all debt obligations — housing plus car loans, student loans, credit cards, etc.
The maximum TDS is 44%, or roughly $2,566/month on a $5,833 income.
If you don’t have any other monthly debt payments, your GDS and TDS limits will be roughly the same, giving you more borrowing power.
How Much Mortgage Can You Get With a $70K Salary?
Let’s break it down with some assumptions:
No other monthly debts
Monthly mortgage/housing budget: $2,200
30-year amortization
6.5% fixed interest rate
Using a mortgage calculator, this gives you:
Mortgage range: $250,000 to $280,000
With a 5% to 20% down payment, you could afford a home priced between $270,000 and $340,000
That’s enough to consider starter homes or condos in many parts of Canada, especially outside the larger markets like Toronto or Vancouver.
💡 Compared to someone making $90,000/year, your mortgage range is about $75,000–$100,000 less. That said, many of the same strategies can help you stretch your homebuying power.
Example Scenario: Mortgage on $70,000 Salary
Let’s say Sarah makes $70,000/year and has no other monthly debts. She’s saved $40,000 for a down payment and wants to get pre-approved.
Here’s what her numbers might look like:
Monthly housing budget: $2,200
30-year mortgage at 6.5%
Mortgage amount: ~$270,000
Total home purchase price: ~$310,000
If Sarah had $400/month in other debts (say, a car payment), her affordable mortgage would drop by about $40,000, lowering her target home price to under $280,000 — unless she increases her down payment or opts for a co-signer.
Factors That Impact Your Mortgage Amount
Even with a steady $70K income, these other factors play a major role in how much mortgage you can be approved for:
1. Your Down Payment
The more money you put down, the less you need to borrow. That also reduces your monthly payment — and in some cases, eliminates mortgage insurance.
Minimum down payment in Canada:
5% on the first $500,000 of the home price
10% on the portion above $500,000
If your down payment is less than 20%, you’ll need mortgage default insurance, which adds to your cost.
2. Interest Rate
At 6.5%, borrowing is more expensive than in recent years. Higher interest = higher monthly payments = lower loan eligibility.
If rates fall in 2026 or beyond, you could refinance to improve your payments.
3. Other Debts
Lenders look at all your recurring debts. Even $300/month in loan payments can reduce your borrowing power significantly.
4. Credit Score
Your score affects both approval and the rate you’re offered.
Above 680: Prime lender rates
Below 600: May require alternative lenders at higher interest
Keep your balances low and payments on time to maintain good credit health.
Tips to Maximize Your Mortgage Potential
If $70,000/year is your current income, here’s how you can make the most of your situation:
✅ Pay Down Existing Debts
Reducing your monthly liabilities opens up more room in your TDS ratio — meaning more mortgage eligibility.
✅ Save a Bigger Down Payment
It might delay your purchase, but it gives you stronger buying power, a smaller mortgage, and better long-term savings.
✅ Improve Your Credit
Even moving from a score of 650 to 700 could make a noticeable difference in your offered rate.
✅ Get Pre-Approved
This gives you a clear ceiling before you start house hunting. Plus, it shows sellers you’re serious.
✅ Consider a 30-Year Amortization
While it costs more in interest long-term, it lowers your monthly payment, which can help you qualify for a larger loan.
Where Can You Buy With a $70,000 Salary?
Let’s be honest — a $300,000 home doesn’t go far in Vancouver or the GTA. But many areas across Canada still offer good value:
Atlantic Canada: Consider homes in cities like Moncton, Saint John, or Halifax suburbs
Prairies: Regina, Saskatoon, and parts of Winnipeg remain affordable
Northern Ontario: Places like Sudbury or Thunder Bay offer lower housing prices
Smaller towns: Across most provinces, small and mid-sized towns offer detached homes well under $400,000
Final Thoughts
A $70,000 salary in Canada can absolutely get you into the housing market — especially if you keep your debts low, build a strong down payment, and shop wisely.
While your maximum mortgage will likely be in the $250K–$300K range, adding a down payment of $40,000 or more can open doors to homes in the $300K–$340K range.
Looking for help understanding your exact borrowing power? At WealthTrack, we’re here to help you navigate pre-approvals, down payments, and rate shopping with real, personalized advice.
