Katy's cash from selling the current house, and the mortgage for a $1.1M–$1.35M purchase. Calculated 2026-11-10; not a lender's quote.
Bottom line
About $771,800 from the sale leaves a $350K–$605K mortgage at these prices: $1,924–$3,652 a month, needing about $97K–$154K of income before tax. At $1.35M, each extra $50K down cuts the payment by about $275–$300 a month and the income needed by about $11K.
Sale of the current house
Sale price
$1,818,000
Commission, 3.5%
−$63,630
HST on commission, 13%
−$8,272
Mortgage payoff
−$200,000
Lawyer and discharge fees
−$2,500 (estimate)
Left after the sale
$1,543,598
Katy's half
$771,799 (if split 50/50)
The sale price is the sold price HouseSigma shows; the agreement of purchase and sale confirms it. The mortgage balance and any early-payoff penalty come from the lender's payout statement. Equalization can move Katy's share either way.
Buying at $1.1M–$1.35M
$1,100,000Mortgage $349,676
Land transfer tax: $18,475
Down payment: $750,324
Mortgage share: 32% of price
Payment at 4.44%: $1,924 a month
Payment at 5.39%: $2,112 a month
Income needed: about $97K
$1,200,000Mortgage $451,676
Land transfer tax: $20,475
Down payment: $748,324
Mortgage share: 38% of price
Payment at 4.44%: $2,485 a month
Payment at 5.39%: $2,728 a month
Income needed: about $119K
$1,300,000Mortgage $553,676
Land transfer tax: $22,475
Down payment: $746,324
Mortgage share: 43% of price
Payment at 4.44%: $3,046 a month
Payment at 5.39%: $3,344 a month
Income needed: about $142K
$1,350,000Mortgage $604,676
Land transfer tax: $23,475
Down payment: $745,324
Mortgage share: 45% of price
Payment at 4.44%: $3,327 a month
Payment at 5.39%: $3,652 a month
Income needed: about $154K
$1.35M with a bigger down payment
+$50,000 downMortgage $554,676
Down payment: $795,324
Mortgage share: 41% of price
Payment at 4.44%: $3,052 a month
Payment at 5.39%: $3,350 a month
Income needed: about $142K
+$100,000 downMortgage $504,676
Down payment: $845,324
Mortgage share: 37% of price
Payment at 4.44%: $2,776 a month
Payment at 5.39%: $3,048 a month
Income needed: about $131K
+$150,000 downMortgage $454,676
Down payment: $895,324
Mortgage share: 34% of price
Payment at 4.44%: $2,501 a month
Payment at 5.39%: $2,746 a month
Income needed: about $120K
A lender will ask where extra money comes from. A gift usually needs a signed gift letter and the money in Katy's account before closing; a loan counts as debt and raises the income needed.
Assumptions
Cash: Katy's half, less $3,000 for lawyer and inspection, less land transfer tax.
Rates: 4.44% is the lowest uninsured 5-year fixed (WOWA); 5.39% is the big-bank average (nesto); both read Nov 10, 2026.
Income needed: before tax; payments tested at 7.39% (5.39% plus 2 points), housing costs under 39% of income, property tax $5,500 a year, heat $150 a month. At the 4.44% rate the test rate is 6.44%, about 8% less income.
Land transfer tax: Ontario's rate only; Vaughan and York Region charge no municipal tax. No first-time buyer refund, because Katy already owns a home. Calculated from the provincial brackets, not checked against a calculator.
Not included: other debts, which lower these limits; support Katy receives, which counts as income; a savings cushion.