The Short Answer
At August 2026 Markham prices and September 2026 rates, with minimum down payment and no other debts, a household needs roughly $152,000 for a condominium apartment, $223,000 for a freehold townhouse, and $300,000 for a detached home. Markham's median household income in the 2021 Census was $104,000. So the cheapest entry point needs about 1.5 times the median, and the detached average needs close to three times. Two things soften that: a 30-year amortization, available to first-time buyers and on new builds, cuts the condominium requirement to about $143,000. And the property tax figure most online calculators use is wrong, which is explained below.
Want this applied to your own property? Call the Kaizen Real Estate Team at (647) 370-8885.
What You Are Actually Qualifying Against
Three rules do most of the work.
The stress test
You do not qualify at your contract rate. You qualify at the greater of your contract rate plus 2%, or 5.25%. Right now every available rate exceeds 3.25%, so the contract-plus-2% figure always binds and the 5.25% floor is inoperative.
One change worth knowing, because it is the most commonly mis-stated mortgage fact in Canada: since 21 November 2024 the stress test no longer applies to uninsured straight switches at renewal, where a borrower moves between federally regulated lenders without increasing the amortization or the loan amount. Renewing borrowers can shop freely.
The debt service ratios
- Gross debt service, meaning principal, interest, property taxes and heat, should not exceed about 39% of gross household income. Half of any condominium fee counts too.
- Total debt service, which adds every other debt payment, should not exceed about 44%.
Those upper limits generally require strong credit. Weaker files are held to roughly 35% and 42%.
Rates as of mid-September 2026
- Bank of Canada policy rate: 2.25%, held at the September decision
- Prime rate: 4.45%
- Five-year fixed, insured: around 4.24%
- Five-year fixed, uninsured: around 4.51%
- Five-year variable, insured: around 3.40%
Questions About Your Situation?
Every Markham property and every timeline is different. Call the Kaizen Real Estate Team at (647) 370-8885 and speak to a REALTORĀ® who works this market daily.
The Property Tax Mistake Almost Every Calculator Makes
This one matters and Michael John Lau, a REALTORĀ® with the Kaizen Real Estate Team in Markham, Ontario and a two-time eXp ICON Agent, corrects it constantly.
Markham's 2026 residential tax rate totals 0.722889%, made up of City of Markham 0.177477%, York Region 0.392412% and education 0.153000%.
That rate applies to the MPAC assessed value, not to what you paid. And MPAC assessments in Ontario remain frozen at 1 January 2016 values.
The City's own published example is a home with a 2026 assessed value of $822,671 paying $5,947 a year. Note that the assessed value is well below Markham's all-types average sale price of $1,208,692, precisely because it is a 2016 valuation.
So the common formula, rate times purchase price, overstates the bill. On a $1,611,773 detached home it produces about $11,651 a year against a published average bill of $5,947. The calculations below use the conservative rate-times-price method, which means the real income requirement is likely somewhat lower than shown. Both figures appear in the table.
The Numbers
Assumptions, stated openly: minimum down payment, insurance premium capitalised into the loan, 25-year amortization, heat at $150 a month, condominium fees assumed at $650 with half counted, gross debt service at 39%, and no other debts. Any car payment or credit card balance raises the requirement through the total debt service test.
Condo apartment | Freehold townhouse | Detached | |
|---|---|---|---|
Average price, Aug 2026 | $638,332 | $1,031,119 | $1,611,773 |
Minimum down payment | $38,833 | $78,112 | $322,355 |
Down payment as % of price | 6.08% | 7.58% | 20.00% |
Mortgage after insurance premium | $623,479 | $991,127 | $1,289,418 |
Qualifying rate | 6.24% | 6.24% | 6.51% |
Monthly payment at qualifying rate | $4,078 | $6,483 | $8,645 |
Income required, tax on price | $151,937 | $223,216 | $300,480 |
Income required, using the City's average tax bill | $155,354 | $219,353 | $285,853 |
Income required at 35% gross debt service | $169,302 | $248,727 | $334,820 |
A note on the detached column: that mortgage is uninsured, so the ratio limits are lender policy rather than a regulated standard, and lenders vary.
Neeraj Moolchandani on the Error in Almost Every Calculator
Neeraj Moolchandani, REALTORĀ® at Kaizen Real Estate, corrects the same mistake weekly. Markham property tax is the rate applied to the MPAC assessed value, not to what you paid, and Ontario assessments are frozen at 2016 values.
The City's own example is a home assessed at $822,671 paying $5,947 a year. Multiply the rate by a current sale price instead and you overstate the bill by thousands, which means most online affordability calculators are too pessimistic. Neeraj runs it the correct way.
What a 30-Year Amortization Does
Insured mortgages qualify for a 30-year amortization if any borrower is a first-time buyer, or the property is newly built.
25-year | 30-year | Difference | |
|---|---|---|---|
Condo apartment | $151,937 | $143,450 | $8,487 less income needed |
Freehold townhouse | $223,216 | $209,725 | $13,491 less income needed |
Monthly payments fall by about $311 on the condominium and $495 on the townhouse at contract rates. The detached home cannot use this, because it is above the insured cap.
The first-time buyer definition here is broader than people expect. It covers anyone who has not occupied a home they or their spouse owned as a principal residence in the current calendar year or the four preceding calendar years. Someone who sold and has rented for four years can re-qualify.
The Gap, Stated Plainly
Property type | Income required | Times the Markham median of $104,000 |
|---|---|---|
Condominium apartment | $151,937 | 1.46 times |
Freehold townhouse | $223,216 | 2.15 times |
Detached | $300,480 | 2.89 times |
An important caveat, because the comparison is not quite like for like. The income figure is from the 2021 Census and reflects 2020 income. The prices are from August 2026. Incomes have risen since 2020, so the true present-day gap is narrower than these multiples suggest. No newer official Markham household income figure has been published.
Markham's average household income in the same Census was $130,800, which puts the condominium within reach of an above-median household and leaves the detached average well beyond it.
Want to Know What You Qualify For?
A city-wide average describes nobody. The Kaizen Real Estate Team runs the arithmetic on the property and the household in front of us.
What Actually Changes the Answer
- Other debt. The calculations above assume none. A $500 monthly car payment consumes roughly $13,600 of qualifying income through the total debt service test.
- A larger down payment. Above 20%, the mortgage is uninsured, the insurance premium disappears and the loan shrinks.
- The variable option. A lower contract rate produces a lower qualifying rate, since the test is contract plus 2%.
- Condominium fees. Every $325 of monthly fee counted in the ratio moves the required income by roughly $10,000. The $650 assumed here is illustrative; a real building's fee should replace it.
- The property type itself. The step from condominium to freehold townhouse requires roughly $71,000 more household income.
The related pieces: how much you actually need for a down payment, what credit score you need, and how the buying process runs step by step.
Next Steps
- Run the mortgage calculator ā with your own numbers rather than these averages.
- First-time buyer programmes ā including the 30-year amortization and the rebates.
- Markham condominiums ā the most accessible entry point in this table.