Calculator
Mortgage affordability calculator
Estimate the most you could spend on a home, using the stress test and the debt limits lenders apply.
Estimated maximum price
$581,900
Limited by: The 39% housing cost limit
- Mortgage amount
- $517,459
- CMHC insurance
- $15,559
- Monthly payment at your rate
- $2,864.00
- Down payment
- 13.7%
- Stress-test rate
- 6.5%
- Monthly payment at stress-test rate
- $3,466.06
Most you can spend on a mortgage payment at the stress-test rate: $3,466.67.
How this estimate works
The calculator finds the highest price where three things hold: your down payment meets the federal minimum, the mortgage payment at the stress-test rate plus property tax, heat and half your condo fees stays within 39% of your gross income, and those costs plus your other debts stay within 44%.
With less than 20% down, CMHC insurance is added to the mortgage, which is included. Lenders also check your credit, job and the property, so your actual approval can be lower or higher.
Questions people ask
How much house can I afford in Canada?
Lenders look at two ratios. Your housing costs (mortgage payment, property tax, heat and half of any condo fees) generally shouldn’t exceed 39% of gross income, and all your debt payments together shouldn’t exceed 44%. The payment is tested at the stress-test rate, not your actual rate.
What rate is used for the mortgage stress test?
The higher of 5.25% or your mortgage rate plus 2 percentage points. It applies to insured and uninsured mortgages from federally regulated lenders.
What are GDS and TDS?
GDS (gross debt service) is housing costs as a share of gross income. TDS (total debt service) adds your other debt payments, such as car loans and credit cards. CMHC’s limits are 39% and 44%.
Is this a mortgage pre-approval?
No. It’s an estimate using federal guidelines. Lenders also look at your credit, income stability, the property and their own policies.
Rules checked on official government pages on . Estimates only, not a quote or approval. WalletReturn doesn’t arrange mortgages and isn’t paid by lenders for this section.CMHC: Requirements for mortgage loan insurance ↗FCAC: Buying a home ↗OSFI: Minimum qualifying rate for uninsured mortgages ↗Finance Canada: qualifying rate for insured mortgages ↗FCAC: Down payment ↗CMHC: Mortgage loan insurance premiums ↗