What Income Do You Need to Buy a House in Calgary? Real Examples

How Much Income Do You Need to Buy a House in Calgary?

Written by Mark Herman, MBA – Mortgage Broker with 22 Years of Experience

One of the first questions many home buyers ask is:

“How much income do I need to buy a house in Calgary?”

Quick Answer (Snippet Call-Out)

In Calgary, a household earning about $100,000 per year can typically afford a home between $450,000 and $500,000, assuming a 5–10% down payment, good credit, minimal debt, and current Canadian mortgage stress test rules. Read More

Stress Test Continues; Was Almost Abolished

Yes, the Stress Test was almost done away with but it continues.

It seems to be a good thing that all the mortgages since 2018 have been “stress tested” at 5.25%. Now that we are in the middle of 3.6 million mortgages renewing over an 18 month period we find that most everyone is able to make their new mortgage payments after renewal.

Mortgage Mark Herman, MBA  in Finance and 22 years experience as a mortgage broker in Western Canada

Nerd alert here!!

OSFI has also determined that loan-to-income (LTI) limits on each institution’s mortgage portfolio will remain in place, alongside the existing stress test.

LTI limits have been in place since each institution’s 2025 fiscal year start and are reported on a quarterly basis.
This is a limit on the volume of newly originated uninsured mortgage loans, at that financial institution, that exceed a 4.5x loan-to-income multiple. This is not a limit on each individual loan.
This measure was introduced in an effort to lessen the build-up of highly leveraged residential mortgage borrowers.
Read More

Buying a Home with a Basement Suite – Some Details

 

Buying a home with a basement suite can be a powerful way to increase affordability, improve cash flow, and build long-term wealth — but not all suites (or lenders) are treated the same. If you’re considering a home with a suite, here are four important things to think about before you buy.

1) The type of suite matters.

If a suite is legal (fully permitted and meets municipal bylaws), all lenders will accept the rental income for qualification. If it’s not legal, make sure it’s at least fully self-contained, meaning it has its own entrance, its own kitchen, and its own bathroom. Many lenders will still consider rental income from these types of suites, but not all.

2) Your lender choice can change how much you qualify for.

Different lenders treat rental income very differently. Some will only allow 50% of the rental income to be used, while others allow up to 100%. Some lenders make you debt-service property taxes and heat, while others do not. These differences can have a huge impact on your approval amount, which is why working with a broker who understands rental income policy is so important.

3) Whether the suite is already rented or not DOES matter. Read More