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Mortgage Affordability Calculator
Find out how much house you can afford based on your income, debts, and down payment. Includes Canada's mortgage stress test requirements.
How Much Can I Afford?
Based on Canadian GDS/TDS ratios and stress test rules
1Your Income & Debts
Car loans, credit cards, student loans
2Down Payment & Mortgage
3Property Costs
Only 50% counts towards GDS ratio
Maximum Home Price
$486,658
GDS Ratio
39.0%
Max: 39%
TDS Ratio
45.0%
Max: 44%
Mortgage Breakdown
CMHC Insurance Required
With less than 20% down, you'll pay $13,536 in premiums (added to your mortgage balance).
Compare Scenarios
25 Years
$486,658
$2,697/mo
30 Years
$523,858
$2,721/mo
💡 30-year amortization increases affordability by ~8% but costs more in interest over time.
How It Works
GDS Ratio (39% max)
Mortgage + Property Tax + Heating + 50% Condo Fees
TDS Ratio (44% max)
All Housing Costs + Other Debt Payments
* Calculations use the mortgage stress test (current rate + 2% or 5.25%, whichever is higher). Actual approval depends on credit score, employment history, and lender-specific criteria.
How Much Mortgage Can You Afford?
Our affordability calculator helps you determine your maximum home purchase price based on Canadian mortgage qualification rules. We calculate both your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to ensure you meet lender requirements.
What You'll Need:
- Annual Income: Your gross household income before taxes
- Monthly Debts: Car payments, credit cards, student loans, etc.
- Down Payment: How much you have saved for a down payment
- Property Expenses: Estimated property taxes, heating, and condo fees
Understanding GDS and TDS Ratios
Canadian lenders use two key ratios to determine how much you can borrow:
GDS Ratio (Gross Debt Service)
Maximum 39% of your gross monthly income can go toward housing costs.
TDS Ratio (Total Debt Service)
Maximum 44% of your gross monthly income can go toward all debts.
The Mortgage Stress Test
Since 2018, Canadian homebuyers must qualify at a higher interest rate than their actual contract rate. This "stress test" ensures you can afford your mortgage even if rates rise.
Current Stress Test Rate:
The higher of: 5.25% OR your contract rate + 2.00%
For example, if you're offered a 4.5% mortgage rate, you must qualify at 6.5% (4.5% + 2%). This reduces the amount you can borrow but protects you from future rate increases.
Frequently Asked Questions
Does this calculator include the stress test?
Yes, our calculator applies the Canadian mortgage stress test rules using the current qualifying rate of 5.25% or your entered rate + 2%, whichever is higher.
What if my down payment is less than 20%?
If your down payment is less than 20%, you'll need mortgage default insurance (CMHC/Genworth/Canada Guaranty). The calculator includes this premium in your total mortgage amount.
Can I afford more if I have a co-signer?
Yes, adding a co-signer with income can increase your affordability. Include their annual income in the calculator, but remember their debts will also be included in the TDS calculation.
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