How Much House Can You Afford in Kelowna? A Realistic Breakdown

If you're wondering how much house you can afford in Kelowna, you're asking the right question at the right time. The Okanagan's real estate market has shifted into a more balanced state over the past two years, giving buyers more breathing room than they've had since the pandemic frenzy of 2021. But "more breathing room" doesn't mean Kelowna is cheap. Detached homes still average over a million dollars, and even condos require serious financial planning before you sign on the dotted line.

This guide breaks down what Kelowna home prices actually look like right now, how lenders decide what you can borrow, what your monthly payments would really be at different price points, and the hidden costs that eat into your budget faster than most people expect. No vague generalities. Just real numbers you can use to figure out where you stand.

What Kelowna Home Prices Look Like Right Now

Before you can figure out what you can afford, you need to know what things actually cost. Kelowna real estate prices vary dramatically depending on whether you're looking at a condo, a townhome, or a detached single-family home.

As of the most recent market data from late 2025, here's what buyers are looking at in the Central Okanagan:

• Condos: Average sale price around $475,000 to $490,000, with the benchmark sitting near $505,000. Condos in downtown Kelowna and the South Pandosy area tend to run higher, while Rutland and parts of Glenmore offer more affordable options.
• Townhomes: Average prices hovering between $700,000 and $725,000. Inventory has been growing, and buyers have more negotiating power in this segment than they have in years.
• Detached single-family homes: The average sale price has fluctuated between $1,024,000 and $1,078,000 through the second half of 2025, depending on the month. The benchmark price for a detached home sits around $1,018,000.

Days on market have been climbing across all property types. Detached homes are averaging around 60 to 70 days, townhomes around 60 to 76 days, and condos between 67 and 76 days. That's good news for buyers. It means less pressure to rush into a decision and more room to negotiate on price.

For a Kelowna affordability calculation, these price ranges are your starting point. The next step is understanding how lenders decide whether you qualify.

How Canadian Lenders Decide What You Can Afford

Your budget and the bank's budget for you are two very different numbers. Canadian lenders use a specific set of rules to determine how large a mortgage they'll approve, and those rules haven't gotten looser just because interest rates have come down a bit.

The Mortgage Stress Test

Every borrower applying through a federally regulated lender in Canada must pass the mortgage stress test. This means your lender doesn't qualify you at the actual interest rate you'll pay. Instead, they use the higher of either 5.25% or your contract rate plus 2%.

As of February 2026, the best 5-year fixed mortgage rates from brokers and online lenders sit around 3.69%, and the best 5-year variable rates are approximately 3.35%. The Bank of Canada's policy rate is holding steady at 2.25%, with the prime rate at 4.45%.

So if you lock in a 5-year fixed rate at 3.69%, your lender qualifies you at 5.69% (your rate plus 2%, since that's higher than the 5.25% floor). That higher qualifying rate significantly reduces how much you can borrow compared to what your actual monthly payment would be.

Debt Service Ratios

Lenders also look at two critical ratios:

• Gross Debt Service (GDS) ratio: Your total monthly housing costs (mortgage payment, property taxes, heating, and half of any strata fees) can't exceed roughly 39% of your gross monthly income.
• Total Debt Service (TDS) ratio: All of your monthly debt obligations combined (housing costs plus car loans, student loans, credit card minimums, lines of credit) can't exceed about 44% of your gross income.

These ratios are calculated using the stress test rate, not your actual mortgage rate. That's the part that surprises a lot of people. You might be able to comfortably handle a $3,000 monthly mortgage payment, but if your debt service ratios don't work at the stress-tested rate, the bank will still say no.

Your Down Payment: What You Actually Need to Bring to the Table

The minimum down payment in Canada depends on the purchase price of the home:

• Under $500,000: 5% minimum down payment
• $500,000 to $1,499,999: 5% on the first $500,000, plus 10% on the portion above $500,000
• $1,500,000 and above: 20% minimum down payment

For a $500,000 condo, that's a minimum of $25,000 down. For a $725,000 townhome, you'd need at least $47,500 ($25,000 on the first $500K plus $22,500 on the remaining $225K). For a $1,050,000 detached home, the minimum is $80,000 ($25,000 plus $55,000 on the amount over $500K).

If your down payment is less than 20%, you'll also need to pay for mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The insurance premium ranges from about 2.8% to 4.0% of the mortgage amount, and it gets added directly to your loan. On a $675,000 mortgage (after putting 5% down on a $725,000 townhome that requires $47,500 down), that insurance premium could add roughly $19,000 to $27,000 to your total mortgage.

Putting 20% down eliminates the insurance requirement entirely, but for most buyers in Kelowna, saving $200,000+ for a down payment on a detached home isn't realistic without help from family or significant equity from a previous property.

Real Mortgage Payment Examples for Kelowna Buyers

Let's put actual numbers together. These examples use a 5-year fixed rate of 4.0% (a realistic rate from a major bank, slightly higher than the best broker rates) and a 25-year amortization. Property taxes and strata fees are estimated based on typical Kelowna costs.

Scenario 1: A $490,000 Condo in Kelowna

This is approximately the average condo price in the Central Okanagan right now.

• Mortgage payment (10% down, $441,000 mortgage + CMHC insurance): ~$2,440/mo
• Property tax: ~$185/mo
• Strata fees: ~$350/mo
• Home insurance: ~$100/mo
• Total monthly housing cost: ~$3,075

Household income needed (approximate): To keep your GDS ratio under 39% at the stress-tested rate, you'd need a gross household income of roughly $95,000 to $105,000 per year. The median household income in Kelowna is about $82,000, and the median family income (typically a couple's combined earnings) is around $120,000. A condo at this price point is within reach for many dual-income households, though it's a stretch for a single buyer earning the median.

Scenario 2: A $725,000 Townhome

Right in line with the current townhome benchmark in the Kelowna area.

• Mortgage payment (10% down, $652,500 mortgage + CMHC insurance): ~$3,610/mo
• Property tax: ~$270/mo
• Strata fees: ~$400/mo
• Home insurance: ~$110/mo
• Total monthly housing cost: ~$4,390

Household income needed (approximate): You're looking at a gross household income of about $140,000 to $155,000 per year to qualify at the stress-tested rate. That puts townhome ownership out of reach for many single-income earners, but it's achievable for dual-income professional households. Keep in mind that any other debt (car payment, student loans, credit card balances) tightens this further.

Scenario 3: A $1,050,000 Detached Home

Close to the current average sale price for a single-family home in Kelowna.

• Mortgage payment (20% down, $840,000 mortgage): ~$4,425/mo
• Property tax: ~$440/mo
• Home insurance: ~$130/mo
• Utilities (gas, electric, water): ~$250/mo
• Total monthly housing cost: ~$5,245

Household income needed (approximate): To qualify, you'd likely need a gross household income north of $190,000 to $210,000 per year, assuming minimal other debt. That's a significant income. A 2025 report from RATESDOTCA estimated that a family would need to earn roughly $234,000 annually to comfortably afford the average-priced single-family home in Kelowna, which is about $114,000 more than the city's median family income of $120,000.

These numbers make it clear why so many first-time buyers in Kelowna are starting with condos or townhomes rather than jumping straight into the detached market.

The Costs Beyond Your Mortgage That Affect Kelowna Affordability

The cost of living in Kelowna goes well beyond your mortgage payment. When you're calculating how much house you can afford, don't forget these ongoing expenses that lenders may or may not factor fully into their calculations:

Property Taxes: The City of Kelowna's residential property tax rate works out to roughly $4.24 per $1,000 of assessed value. On a home assessed at $800,000, that's approximately $3,400 per year. On a $1,000,000 home, expect around $5,000 to $5,250 annually. The city approved a 4.37% tax increase for 2026, so these numbers will tick up slightly.

Strata Fees: If you're buying a condo or townhome, monthly strata fees typically range from $300 to $600 or more, depending on the building's age, amenities, and reserve fund health. Newer buildings with elevators, gyms, and underground parking tend to sit at the higher end. These fees cover common area maintenance, building insurance, and contributions to the contingency reserve fund for future repairs. Strata fees are one of the most commonly underestimated expenses for new condo buyers.

Home Insurance: Budget $1,000 to $1,800 per year depending on your property type, location, and coverage level. Homes in areas with higher wildfire risk (parts of Upper Mission, Southeast Kelowna, Joe Rich) may see higher premiums.

Utilities: For a detached home in Kelowna, expect to spend roughly $200 to $300 per month on gas, electricity, water, and sewer combined. Condos and townhomes tend to run less because strata fees often cover water and building insurance.

Maintenance: The general rule of thumb is to budget 1% of your home's value per year for maintenance and repairs. On a million-dollar home, that's $10,000 per year, or about $833 per month. You won't spend that every month, but when the roof needs replacing or the furnace dies, you'll be glad you set money aside.

How to Figure Out Your Personal Kelowna Home Buying Budget

A mortgage calculator for Kelowna buyers should account for more than just the mortgage payment. Here's a practical framework for determining what you can genuinely afford:

Step 1: Get pre-approved. Talk to a mortgage broker or lender before you start shopping. A pre-approval tells you exactly how much the bank will lend you based on your actual income, debts, and credit score. It also locks in your rate for 90 to 120 days, which protects you if rates move higher while you're searching.

Step 2: Calculate your total monthly housing cost. Add up the mortgage payment, property taxes, strata fees (if applicable), home insurance, and utilities. This is your true monthly housing cost, not just the mortgage.

Step 3: Stress test yourself. Even though the bank stress tests you, do your own version. Ask yourself: could you handle these payments if your household lost one income for three months? If interest rates were 1% to 2% higher when your term renews in five years? If you had an unexpected $10,000 repair bill? Your comfort zone should be well below the maximum the bank will approve.

Step 4: Factor in your goals. If you want to keep traveling, saving for retirement, or building an emergency fund, don't max out your mortgage. The bank will tell you the most you can borrow. That doesn't mean you should borrow it all.

Step 5: Consider where you're willing to compromise. In Kelowna, neighbourhood choice has a massive impact on what you get for your money. A three-bedroom home in Rutland might cost $750,000, while a similar property in Lower Mission could be $1.2 million. If keeping your housing costs manageable is a priority, being flexible on location opens up options that might not exist in the city's most sought-after areas.

The Bigger Picture: Where Kelowna Affordability Is Heading

Kelowna home prices have stabilized after the rapid run-up of 2021 and 2022. Detached homes are generally holding steady near the $1 million mark, while the condo market has softened slightly with increased inventory. Townhomes are sitting in buyer-friendly territory with more listings and longer days on market than we've seen in years.

Interest rates are unlikely to drop dramatically in 2026. The Bank of Canada has signalled that its current policy rate of 2.25% is close to where it wants to be for now, with no imminent cuts or hikes expected. Fixed mortgage rates are hovering in the mid-to-high 3% range, and variable rates sit just above 3.3%. That's a much more manageable environment than the 5% to 6% rates borrowers faced in 2023, but it's nowhere near the sub-2% era of 2020 and 2021.

For buyers, this means the math is straightforward but demanding. A condo is accessible for many dual-income households earning around $100,000 or more. A townhome requires roughly $140,000 to $155,000 in household income. A detached home pushes that north of $190,000, and often well beyond $200,000 once you factor in other debts.

The silver lining? Kelowna's market is more balanced than it has been in years. Buyers have time to think, room to negotiate, and the benefit of elevated inventory. If you've been waiting for the right conditions to start seriously looking, the numbers are at least more transparent than they've been in a while, even if they're not as friendly as most people would like.