How Much House Can You Afford in Windsor?

A Budgeting Guide for First-Time Buyers

Windsor, Ontario, is becoming a go-to city for first-time home buyers — and for good reason. It’s more affordable than many other Canadian cities, offers a strong sense of community, and provides newcomers with a manageable cost of living. But before you leap from renting to owning, it’s important to figure out just how much house you can afford.

If you're a first time home buyer in Windsor or someone who's been renting in Windsor and looking to settle down, this guide will walk you through what to consider when budgeting for a home.

Let’s break it down in easy bullet points, with real numbers and helpful insights.

Why Windsor is Worth Considering

• More house for your dollar: Average home prices in Windsor are well below the national average.

• Proximity to Detroit: Easy cross-border access without big-city prices.

• A growing city: As Windsor continues to develop, home values are rising, making it a smart time to buy.

• Great for newcomers: Windsor has a diverse, welcoming community and strong newcomer support systems.

From Renting in Windsor to Buying

If you've been renting in Windsor, here's what to consider before transitioning to buying.

Renting in Windsor (as of 2025):

• Average rent for a 2-bedroom apartment: $1,400–$1,700/month

• Monthly payments may be lower, but you’re not building equity

• Less commitment and flexibility to move if needed

Buying in Windsor:

• Monthly mortgage for a $400,000 home with 5% down: Around $2,000/month (including taxes and insurance)

• Higher upfront costs, but you're investing in your future

• Long-term savings through home equity and potential appreciation

Tip: If you're planning to stay in Windsor for more than 4–5 years, buying might be a better financial move.

Budgeting 101: How Much Can You Afford?

When figuring out how much house you can afford, lenders will look at something called your Gross Debt Service (GDS) ratio. Here's a simplified version of what you need to know:

1. Start With Your Gross Income

• Lenders generally recommend spending no more than 32% of your gross monthly income on housing.

• Example: If your household earns $6,000/month, your housing budget would be about $1,920/month.

2. Don’t Forget the Extra Costs

It’s not just the mortgage. Factor in:

• Property taxes

• Utilities

• Home insurance

• Maintenance or repair expenses

• Closing costs (typically 1.5–4% of the home price)

3. Use This Quick Formula

A conservative rule of thumb is:

So if your household earns $75,000 annually, a home in the $350,000–$375,000 range may be affordable, depending on your debt and savings.

First-Time Buyer Scenario (Windsor Example)

Let’s say you’re buying your first home in Windsor and earn $80,000/year:

• Target monthly housing cost: $2,100–$2,300

• Home price affordability: $375,000–$425,000

• Down payment (minimum 5%): $18,750–$21,250

• Monthly mortgage payment: ~$1,900–$2,100

Reminder: These are estimates — actual numbers will vary based on mortgage rate, insurance, and other variables.

Best Mortgage Options for Newcomers to Canada

If you're new to Canada, you might not have an established credit history yet, but you still have options.

Here are some best mortgage programs for newcomers:

• Scotiabank StartRight® Program

  • Designed for recent immigrants with limited Canadian credit history.

  • Accepts proof of foreign income and international credit profiles.

• RBC Newcomer Mortgage

  • Offers flexible down payment options.

  • It can help build your Canadian credit history through mortgage payments.

• TD Mortgage for Newcomers

  • Allows for flexible income documentation.

  • Designed for permanent residents or those who have been in Canada for less than 5 years.

Pro tip: Save a bigger down payment if possible — this can help you avoid mortgage insurance and get better interest rates.

Tips for First-Time Home Buyers in Windsor

Whether you’re a resident or just moved to Windsor, here are some ways to prepare for a smooth first home purchase:

• Check your credit score: A higher score helps with better mortgage rates.

• Create a realistic monthly budget: Include housing costs, utilities, food, transportation, and savings.

• Open a First Home Savings Account (FHSA): This tax-free account helps you save specifically for your first home.

• Get mortgage pre-approval: Know your price range before you start house hunting.

• Avoid new debt: Hold off on car loans or big credit card purchases until after you’ve closed on a home.

Final Thoughts: Making the Leap From Renter to Owner

Buying a home in Windsor can be within reach, especially if you're coming from a rental background or starting fresh in Canada. With its affordability, community vibe, and supportive programs for first-time buyers and newcomers, Windsor is a great place to plant roots.

Start by crunching the numbers, planning, and exploring mortgage options that fit your unique situation. Homeownership might be closer than you think.