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Mortgage Affordability Calculator

Find out how much home you can afford based on your income, debts, and down payment using Canadian GDS/TDS guidelines and the federal mortgage stress test.

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Your total pre-tax annual income including salary, wages, and guaranteed bonuses.
$
Spouse or co-borrower's gross annual income. Leave at 0 if applying alone.
$
Rental income, pension, investment income, or other verifiable income sources.
$
Monthly auto loan or lease payments for all vehicles.
$
Monthly student loan repayment amount.
$
Total minimum monthly payments across all credit cards. Lenders use 3% of outstanding balance if no payment is specified.
$
Monthly payment on personal or home equity lines of credit.
$
Any other recurring monthly debt obligations (personal loans, support payments, etc.).
$
Total cash available for your down payment. Minimum 5% for homes under $500K, 10% on $500K–$999K portion, 20% for $1M+.
$
Monthly condo or strata maintenance fees. Included in GDS ratio calculation. Enter 0 for detached homes.
$
Estimated monthly heating costs. Lenders typically use $150/month as a standard estimate.
$
Property tax as a percentage of home value. Typically 0.5%–1.5% depending on city. E.g., Toronto ≈ 0.63%, Vancouver ≈ 0.27%.
%
Fixed: Rate stays the same for the entire term — predictable payments, protected from rate increases.

Variable: Rate moves with the Bank of Canada prime rate — historically lower, but payments may change.

Rate locked for the full term — stable, predictable payments

Your expected mortgage rate. The stress test will qualify you at the higher of this rate + 2% or 5.25%.
%
The term is how long your rate is locked in (6 months–7 years). At the end of the term you renew — typically at a new rate. This is different from the amortization period (total repayment time).

How long your rate is locked in before renewal

Total time to pay off the mortgage (typically 25 years)

Maximum Home Price
$420,131
Max mortgage: $340,131 · 🔒 Fixed rate · Qualifying rate: 7.25% · Down payment: 19.0%
CMHC insurance required — premium: $9,524 (added to mortgage)
Federal Stress Test Applied: You are qualified at 7.25% — the higher of your contract rate (5.25%) + 2% = 7.25% or the floor rate of 5.25%. This is required by OSFI for all federally regulated lenders in Canada.
GDS Ratio
37.1%/ 39% max
Acceptable — near limit
TDS Ratio
44.0%/ 44% max
Acceptable — near limit
Gross Monthly Income
$7,917
Monthly Mortgage Payment
$2,503
Total Monthly Housing
$2,933
Total Monthly Obligations
$3,483
Max by GDS (39%)
$439,339
Max by TDS (44%)
$420,131

Monthly Cost Breakdown at Maximum Affordability

Mortgage Payment$2,503
Property Tax$280
Heating$150
Other Debts$550
Total Monthly Obligations$3,483

How to Increase Your Maximum Affordability

Increase your down payment
A larger down payment reduces your mortgage amount and may eliminate CMHC insurance (20%+ down).
Pay down existing debts
Reducing monthly debt obligations directly improves your TDS ratio, often the binding constraint.
Add a co-applicant
A co-borrower's income is fully counted, potentially doubling your qualifying income.
Extend amortization to 30 years
Longer amortization reduces monthly payments, improving GDS/TDS ratios (available on uninsured mortgages).
Shop for a lower rate
Even a 0.5% rate reduction can meaningfully increase your maximum qualifying amount.
Consider a less expensive city
Lower property taxes in cities like Calgary or Edmonton reduce your GDS ratio, increasing affordability.
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What is the GDS Ratio?

The Gross Debt Service (GDS) ratio is the percentage of your gross monthly income needed to cover housing costs: mortgage payment, property taxes, heating, and 50% of condo fees. Canadian lenders require GDS ≤ 39%. A GDS below 32% is considered excellent.

What is the TDS Ratio?

The Total Debt Service (TDS) ratio adds all other monthly debt obligations (car loans, credit cards, student loans) to your housing costs and divides by gross monthly income. Canadian lenders require TDS ≤ 44%. A TDS below 36% is considered excellent.

What is the Mortgage Stress Test?

Since 2018, all federally regulated lenders must qualify borrowers at the higher of their contract rate + 2% or 5.25%. This ensures you can still afford your mortgage if rates rise. The stress test typically reduces maximum affordability by 15–20% compared to qualifying at the contract rate.

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Disclaimer: This calculator provides estimates based on standard Canadian GDS/TDS guidelines and the federal mortgage stress test. Actual qualification depends on your credit score, employment history, lender policies, and other factors. Results are for informational purposes only and do not constitute financial or mortgage advice. Consult a licensed mortgage professional for personalized guidance. No data entered is collected or stored.