Mortgage Blog

How Much Home Can I Afford in Cochrane, Airdrie, Strathmore, and Calgary?

February 12, 2026 | Posted by: Patricia McKean - Cochrane and Airdrie Mortgage Broker

If you're a first-time buyer in Cochrane, Airdrie, Strathmore, or Calgary, this question is probably sitting in the back of your mind: What price range is actually realistic for us?

It’s exciting to scroll listings. It’s stressful to guess wrong. We’ve sat at hundreds of kitchen tables where buyers were either aiming too low out of fear, or stretching too high without realizing the numbers.

Let’s break this down clearly.

What We’ll Cover

• What determines how much you can afford
• How your down payment changes your buying power
• What monthly payments might look like
• How income, debt, and credit affect qualifying
• A real first-time buyer case study
• Glossary
• FAQs

What Actually Determines How Much Home You Can Afford?

There are four main levers:

• Income
• Debt
• Down payment
• Credit history

Lenders don’t base approvals on what feels comfortable. They use ratios.

For insured mortgages in Canada, lenders look at:

• Gross Debt Service (GDS), Housing costs vs. income
• Total Debt Service (TDS), Housing costs + other debt vs. income

If those ratios fit inside guidelines, and your credit supports it, you qualify.

But qualifying and sleeping well at night are not always the same thing. We help clients look at both.

How Income and Debt Affect Your Price Range

Let’s use simple math.

Imagine:

• Household income: $110,000 per year
• Monthly income: $9,167
• Car payment: $450
• Credit card minimums: $150
• Total non-housing debt: $600/month

Now let’s assume current qualifying rules apply and rates require you to qualify at the stress test rate (we’ll avoid locking in numbers since those change).

Based on typical ratios, rough maximum housing payment might land around $2,800–$3,200/month, depending on taxes and heating costs.

That housing payment must include:

• Mortgage principal & interest
• Property taxes
• Heating estimate

That number helps determine your maximum purchase price.

How Down Payment Changes Buying Power

This is where first-time buyers often get surprised.

Minimum down payment in Canada:

• 5% on first $500,000
• 10% on portion above $500,000

Let’s compare two scenarios.

Scenario A: 5% Down

• Purchase price: $500,000
• Down payment: $25,000
• Mortgage: $475,000

Scenario B: 10% Down

• Purchase price: $500,000
• Down payment: $50,000
• Mortgage: $450,000

That $25,000 difference reduces:

• Your mortgage balance
• Your monthly payment
• Your mortgage insurance premium

Even an extra $10,000 can shift your affordability window by $40,000–$60,000 in purchase price.

We see this often with buyers in Airdrie and Cochrane where detached homes can sit in the $550,000–$700,000 range.

What Monthly Payments Might Look Like

Let’s use a simple example.

• Purchase price: $520,000
• Down payment: 5% ($26,000)
• Mortgage (approximate, before insurance): $494,000

If we assume a rate around the mid-5% range and a 25-year amortization, rough monthly mortgage payment could land around $3,000–$3,200.

Now add:

• Property taxes (say $350/month in Calgary)
• Heating estimate ($150/month)

Total housing cost: around $3,500–$3,700/month.

That’s the number that needs to fit comfortably inside your income ratios.

How Credit Impacts Approval

Your credit score affects:

• Whether you qualify
• What rate you receive
• How flexible a lender will be

For first-time buyers, we typically like to see:

• 680+ for best options
• 600–680 workable with the right structure
• Below 600 requires more planning

A strong credit profile can mean thousands saved in interest over a 5-year term.

Case Study: First-Time Buyers in Airdrie

Let’s look at a realistic example.

Emma and Josh:

• Combined income: $120,000
• Car loan: $520/month
• No credit card debt
• Down payment saved: $35,000

They initially thought they could afford $650,000.

After reviewing their ratios, taxes, and qualifying rate, comfortable purchase range landed closer to $525,000–$560,000.

At $550,000 with 5% down:

• Down payment: $27,500
• Mortgage: roughly $522,500 plus insurance
• Monthly housing cost: around $3,600

That fit their ratios and still allowed:

• Savings room
• Emergency buffer
• Future daycare planning

They bought a detached home just under $550,000 and weren’t stretched thin.

That’s what we want.

What Price Range Is Realistic in This Region?

Very general ranges right now:

• Strathmore, Often more affordable detached options
• Airdrie, Strong entry-level detached and townhome market
• Cochrane, Growing family communities, mid-range pricing
• Calgary, Wide range depending on quadrant and property type

Your exact affordability depends on your numbers, not the city average.

Glossary

• Gross Debt Service (GDS), Percentage of income used for housing costs.
• Total Debt Service (TDS), Percentage of income used for housing plus other debts.
• Stress Test, The higher qualifying rate lenders use to ensure you can handle rate increases.
• Down Payment, The upfront amount you contribute toward the purchase.
• Mortgage Insurance, Required when putting less than 20% down.
• Amortization, The total length of time it takes to pay off your mortgage.
• Pre-Approval, A lender’s conditional confirmation of how much you can borrow.

FAQs

• How much income do I need to buy a $500,000 home?
  It depends on your debt and down payment, but typically household income above $100,000 with minimal debt makes that range workable.
• Does a bigger down payment always increase affordability?
  Yes. It reduces your mortgage amount and improves your ratios.
• Should I max out what I qualify for?
  Not always. We usually suggest leaving room for life, travel, kids, job changes.
• Do I need 20% down as a first-time buyer?
  No. Many first-time buyers purchase with 5% down.
• Is a pre-approval the same as guaranteed approval?
  No. It’s conditional on income, property, and credit verification.

Final Thoughts

Affordability isn’t about chasing the maximum number a bank gives you.

It’s about buying a home in Calgary, Airdrie, Cochrane, or Strathmore that supports your life, not one that pressures it.

If you'd like to run your own numbers and see your true buying range, reach out to our team for a personalized affordability review.

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