The question is simple, but the answer depends on several variables. In May 2026, after the Bank of Canada held its overnight rate at 2.25% on April 29 (4th consecutive pause), financing conditions are stable. Combined with QPAAB March 2026 data(Montreal single-family median: $652,250, +6.9% year-over-year), here is the practical math.
1. Typical case — median single-family at $652,250
With a 20% down payment ($130,450) and a 5-year fixed rate at 3.69%amortized over 25 years, the $521,800 mortgage produces a monthly payment of about $2,670.
Total monthly carrying costs
- Mortgage (P+I): $2,670
- Municipal & school taxes: ~$520
- Estimated heating: ~$130
- Total carrying costs (GDS): ~$3,320/month
With GDS capped at 39% by lenders, the required household gross income is ~$8,510/month, or about $102,000/year — but in practice banks require more buffer, placing the realistic threshold at ~$138,000/year for comfort.
2. With minimum 5% down payment
A 5% down payment ($32,612) triggers CMHC insurance (~4% of capital), added to the borrowed amount. The mortgage rises to ~$644,405, monthly payment of about $3,295. Total carrying: ~$3,945/month → required household income ~$165,000/year.
3. Comparison by property type
Condo — $420,000
$92,000
income/year (20% down)
Single-family — $652,250
$138,000
income/year (20% down)
Plex — $855,000
$178,000
income/year (before rentals)
For a plex, recognized rental income (50% to 100% depending on lender) can reduce the qualification threshold by 25% to 40%, making it accessible with personal income of ~$110,000/year in many scenarios.
4. More affordable Montreal neighborhoods
If your income is between $90,000 and $120,000, several neighborhoods offer more affordable medians: Mercier, Saint-Léonard, Anjou, Montréal-Nord, Rivière-des-Prairies(single-family medians $450K–$550K). Conversely, Outremont, Le Plateau and Westmount post medians above $1M, requiring household income above $230,000/year.
5. Assistance programs to know in 2026
- HBP (Home Buyers’ Plan): up to $60,000 withdrawn from RRSP for down payment, tax-free if repaid over 15 years.
- FHSA: $8,000/year contribution, $40,000 cap, tax deduction and tax-free withdrawal.
- First-Time Home Buyer Tax Credit: $1,500 federal credit on first home purchase.
- City of Montreal Home Ownership Program: up to $15,000 in support for families under certain thresholds.
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