Understanding what income level is required to qualify for a mortgage is one of the most important first steps in the homebuying, renewal, or refinancing process.

The Required Income Calculator helps you estimate how much gross annual income you would need to qualify for a specific mortgage amount in Canada, based on current lending guidelines and the federal stress test. By entering your mortgage size, interest rate, property taxes, heating costs, and optional condo fees, you’ll get an instant snapshot of how much money you need to be making. And if you fall short, it’s time to discuss adding someone else onto the mortgage or bringing in a co-signor.

My Required Income Calculator also lets you know your monthly housing costs and allows you to measure the impact of other debt (credit cards, car leases, student loans, child support, etc.) on how much gross income you require for a certain size mortgage.

Whether you’re a first-time buyer, planning a refinance, or comparing mortgage options, this tool helps you make informed decisions and approach your mortgage pre-approval with confidence.

Understanding the Required Income Calculator

The Required Income Calculator shows you:

• Your Required Gross Annual Income
• Your Monthly Housing Costs
• Your Required Gross Annual Income for GDS (before considering other debt, or if you have no other debt)
• Your Required Gross Annual Income for TDS (after considering all your other debt)

Based on the required values you input, federal stress-test requirements, and your Qualification Profile.

Qualification Profile

The Required Income Calculator allows you to select:

Insured/Strong Qualification Profile for clients who have a strong credit profile, credit score, and a consistent income profile (think government worker like a police officer). This is the least amount of income prime lenders (like chartered banks) will require for a given mortgage.

Suggested Qualification Profile is for clients who don’t want to be house rich and cash poor and want to follow the suggested required gross annual income as guided by financial planners and advisors.

Custom Qualification Profile is for clients who need to seek alternative financing through a ‘B’ lender or seek a Private Mortgage through a Mortgage Investment Corporation (for example). 

Key Takeaway

By understanding how much income you require for a given size mortgage, you’ll be better able to plan and make decisions about your financing possibilities.