The costs of buying and lending in real estate is high but a first-time homebuyer’s income is an important part of the puzzle. The more stable, secure, and lucrative a buyer’s income, the more likely they can arrive with a sizeable down-payment and negotiate better terms with a lender.

Here is a glimpse into what’s the income you need to buy a house in Toronto.

Current Dynamics Of Toronto’s Real Estate Market

Toronto is among Canada’s most expensive housing markets. Any buyer should expect their income having to match the tone of the real estate for sale.

In an effort to get the most they can, many first-time buyers will look at non-downtown areas, such as Etobicoke, or search for a condo for sale which are comparatively affordable next to detached housing.

Thinking about buying a home in Toronto? Check out these blogs for more advice!

Current Average Home Prices In Toronto

In 2025, your average home prices in Toronto are in the following range. These prices vary dramatically by location.

  • Detached housing: $1.4-$1.5 million
  • Semi-detached housing: $1-$1.3 million
  • Townhouse: $800,000-$1 million
  • Condo: $680,000-$720,000

Income Requirements By Property Type

For a detached house, your household will need an income of over $230,000. If you are buying with a spouse or partner, you can use your combined incomes to reach that number.

For a semi-detached, a household will typically need around $170,000 in annual income while townhouses require an income of $130,000. A condo – by far, the most accessible option for a first-time buyer – requires an income of $110,000.

Your down-payment affects these income requirements as can your debt levels.

How Lenders Will See Your Debt Levels, Income, And Credit

A lender looks at everything to determine what they’re willing to lend you in a mortgage agreement.

A major influence on the amount is debt. A buyer carrying a lot of debt will struggle to secure a favorable mortgage. Your Gross Debt Service (GDS) ratio should be below 39% and your Total Debt Service (TDS) ratio must remain under 44%.

In addition, a lender will want stable employment and a credit score of minimum 680.

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These are all factors to consider as you look at your income and seek ways to strengthen your purchasing power.

Minimum Down-Payment Rules In Toronto To Be Aware Of

Even with the income needed to secure the type of housing you want, there’s the down-payment to save. For someone with a lower income, a larger down-payment can reduce what they have to borrow. It makes sense to save as much as you can, regardless of income amount. Here are the minimum down-payment rules to follow.

  • Homes under $500,000: 5% minimum
  • Homes $500,000 to $900,000: 5% on first $500K + 10% on the remainder
  • Homes $1 million and above: 20% minimum

Please note that any home you buy with less than 20% down will require CMHC insurance as well, raising your annual cost of homeownership.

How Can I Improve My Purchasing Power With The Income That I Have?

Unless there is a reasonable pathway to dramatically improving your income, it’s best to assume your income at present is what it’s going to be when you come to try to purchase a house in Toronto.

There are lots of things one can do to get the most out of their income amount and overall purchasing power. First-time buyer incentives, evaluating different mortgage options, and ensuring you accurately estimate total costs are all important.

Are you searching for a home to buy in Toronto? Reach out to the experts at Adrian + Andrea at info@adrianandrea.com or call (416) 319-6893 for more information.