Affordability Calculator

Your Financial Details

I'm looking to

Annual Household Income (before tax) Combined gross annual income of all applicants

First-Time Home Buyer?

Down Payment Minimum: 5% on first $500K, 10% on $500K–$999K, 20% on $1M+

Current Mortgage Balance

Do you want to consolidate debts?

Debt to Consolidate Total debt amount to roll into your mortgage

Total Monthly Debt Payments Car loans, credit cards, student loans, lines of credit, etc.

Annual Property Tax Estimated annual property tax for your target area

Monthly Condo / Maintenance Fees 50% of condo fees are included in your GDS calculation

Payment Frequency

Amortization

Mortgage Term

Rate Type

Interest Rate (%)

What You Can Afford

Maximum Purchase Price $0 Based on 25-year amortization

Your Mortgage

Down Payment $0

Maximum Mortgage $0

Estimated Monthly Payment $0

Qualification Ratios

GDS Ratio (max 39%) 0%

TDS Ratio (max 44%) 0%

Stress Test Rate 5.25%

These numbers represent a non-binding estimate based on Canadian mortgage qualification rules (GDS/TDS). Rates and terms subject to approval.

How Much Home Can You Afford?

In Canada, mortgage affordability is determined by two key ratios that lenders use to evaluate your ability to carry a mortgage. Understanding these ratios helps you know what to expect before you apply.

GDS and TDS Ratios Explained

The Gross Debt Service (GDS) ratio measures your housing costs as a percentage of your gross income. It includes your mortgage payment, property taxes, heating costs, and 50% of any condo fees. Most lenders require your GDS to be 39% or less.

The Total Debt Service (TDS) ratio adds your other monthly debt obligations (car payments, credit cards, student loans, etc.) to the GDS calculation. Most lenders require your TDS to be 44% or less.

The Mortgage Stress Test

All Canadian mortgage applicants must qualify at the stress test rate, which is the higher of your contract rate plus 2% or 5.25%. This ensures you can handle potential rate increases. For example, if your contract rate is 4.04%, your qualifying rate would be 6.04%.

Down Payment Requirements

Canada has tiered minimum down payment requirements:

Under $500,000: Minimum 5% down payment
$500,000 – $999,999: 5% on the first $500K plus 10% on the remaining portion
$1,000,000 and above: Minimum 20% down payment

If your down payment is less than 20%, you will need CMHC mortgage insurance, which protects the lender and is added to your mortgage balance.

Tips to Maximize Your Buying Power

Pay down debt: Lowering your monthly obligations improves your TDS ratio and increases your maximum mortgage.
Increase your down payment: A larger down payment reduces your mortgage amount and may eliminate the need for CMHC insurance.
Consider a longer amortization: A 30-year amortization lowers your monthly payment, though you may need at least 20% down.
Include a co-applicant: Adding a spouse or partner's income increases your total household income.

Ready to find your perfect home?

Speak with a licensed mortgage specialist who can help you get pre-approved and understand exactly how much you qualify for. No obligation, no credit check required.