Mortgage affordability calculator

Find out how much house you can afford in Canada. The calculator applies the lender limits on your housing and total debt costs, at the stress test rate you must qualify at.

How lenders decide what you can afford

Canadian lenders use two debt service ratios, worked out on your gross (before-tax) income:

Ratio	What it includes	Usual limit
Gross debt service (GDS)	Mortgage payment, property tax, heating (and half of any condo fees)	39%
Total debt service (TDS)	Everything in GDS plus your other debt payments	44%

Both ratios use the stress test rate: the higher of 5.25% or your mortgage rate plus 2%. This makes sure you could still manage the payments if rates went up.

Example

A household earning $120,000 with $500 a month of other debts, $400 property tax and $100 heating can spend up to $3,400 a month on the mortgage payment under the stress test. At a 4.29% rate (a 6.29% qualifying rate) over 25 years, that supports a mortgage of about $517,390. With $60,000 down, the home could cost up to about $577,390, and the actual payment at 4.29% would be $2,803.52 a month.

Minimum down payment

The down payment also caps the price: 5% of the first $500,000, 10% of the part from $500,000 to $1.5 million, and 20% on homes of $1.5 million or more. With less than 20% down, you also need mortgage default insurance (such as CMHC), which is added to your mortgage. See our mortgage calculator for the premium.

Frequently asked questions

Can I get a 30-year amortization?

With 20% or more down, most lenders offer up to 30 years. On an insured mortgage, 30 years is available to first-time buyers and buyers of newly built homes; otherwise the maximum is 25 years.

Does the stress test apply to everyone?

It applies to mortgages from federally regulated lenders, including the big banks, for both insured and uninsured mortgages. Some provincially regulated lenders and credit unions apply their own rules.

A guide only, not a pre-approval. Lenders also look at your credit score, employment and the property itself.