How much mortgage can I afford in Ontario?
Stress-tested at the greater of contract +2% or 5.25% — the same math a federally regulated lender will run on your file. Province-aware: includes land transfer tax and closing costs so you see real cash-needed-at-closing, not just the qualifying mortgage.
How much you can afford isn't set by your real rate — it's set by the stress test, which qualifies you at the greater of your rate +2% or 5.25%. This calculator runs that math with your income, debts and down payment, then adds your province's land transfer tax and closing costs so you see the real cash needed at closing, not just the qualifying mortgage. Enter your numbers above.
Your inputs
Lifetime cost of your maximum mortgage
Principal vs. interest over the full 30-year amortization at the 5.94% qualifying rate
Lender-ready summary, your assumptions baked in, and a personalized note from an advisor at Mortgage Squad Advisors.
How lenders decide what you can afford
Affordability in Canada is governed by two debt-service ratios, both measured at the qualifying (stress-test) rate — the greater of your contract rate +2% or 5.25%. Your Gross Debt Service (GDS) ratio caps housing costs (principal, interest, property tax and heat) at roughly 39% of gross income. Your Total Debt Service (TDS) ratio caps housing plus every other monthly obligation at about 44%.
Whichever ratio you hit first becomes your binding limit. That is why paying down a car loan or credit-card balance can lift your maximum purchase more than a small income bump — it frees up room under the 44% TDS ceiling. The bars below show exactly where your file lands against both limits.
Want to push the number higher? Compare lenders with our stress test calculator — some provincial credit unions qualify at contract rate — or see the income behind any price with our income-required calculator.
Your debt-service ratios vs. lender limits
Computed at the 5.94% qualifying rate. Staying under both bars is what gets your file approved.
GDS counts principal, interest, property tax and heat. TDS adds your other monthly debt of $450. A green bar means you clear the limit with room to spare; a red bar means the limit is capping your maximum purchase.
Amortization schedule
How your balance falls — and how the interest/principal split shifts — over 30 years.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $7,776 | $36,045 | $610,042 |
| 2 | $8,245 | $35,577 | $601,797 |
| 3 | $8,742 | $35,080 | $593,055 |
| 4 | $9,269 | $34,553 | $583,787 |
| 5 | $9,827 | $33,994 | $573,959 |
| 6 | $10,420 | $33,402 | $563,539 |
| 7 | $11,048 | $32,773 | $552,491 |
| 8 | $11,714 | $32,107 | $540,777 |
| 9 | $12,420 | $31,401 | $528,357 |
| 10 | $13,169 | $30,653 | $515,188 |
Worked example: what a $140,000 household can afford
Take a couple with an annual household income of $140,000 and about $600 a month going to credit cards, lines of credit and a car loan. Those recurring monthly payments don't lower their income, but they do eat into the 44% TDS ceiling — so they cap the mortgage before the GDS ratio ever gets a chance to.
Say they put 20% down and choose a 30-year amortization period. Because the qualifying payment is sized at the stress-test rate (the greater of their contract rate +2% or 5.25%), the GDS/TDS math lands them in a price range of roughly $620,000–$660,000 rather than the higher number their contract rate alone would suggest. At 20% down they're above the insured threshold, so no mortgage default insurance premium is added — but a buyer with less than 20% down would see that premium financed on top, changing both the cash-to-close and the qualifying figure.
Clearing that $600 of monthly debt is often the fastest lever: paying it off frees room under the 44% ceiling and can lift the mortgage you can afford by tens of thousands — usually more than a modest raise would. Enter your own numbers above to see where your file lands.
• Qualified at the stress-test rate of 5.94% (greater of contract +2% or 5.25%).
• Property tax estimated at 1.00% of price annually.
• Insured/uninsured down-payment minimums (5%/20%) and CMHC premiums are not modelled here.