Mortgage Affordability Calculator
— know your number first.
Stress-tested at contract rate + 2%, with GDS/TDS ratios, land transfer tax, and cash-to-close. Free, no credit pull.
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Mortgage affordability calculator: how much house can you afford in Canada?
Lenders qualify you at the stress-test rate: the greater of your rate + 2% or 5.25%. That rate, your income and your debts set how much you can borrow. This tool also adds closing costs, so you see the cash needed at closing.
Your numbers
Lifetime cost of your maximum mortgage
Principal vs. interest over the full 30-year amortization at the 6.14% qualifying rate
Mortgage Squad Advisors · FSRA #13737 · Licensed in Ontario only.
Your inputs and results in one page you can keep.
Read the full explanationThe rules behind the numbers, with worked examples.
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 (on uninsured files, some provincially regulated credit unions set their own qualifying rules) or see the income behind any price with our income-required calculator.
Your debt-service ratios vs. lender limits
Computed at the 6.14% 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 | $7,390 | $36,715 | $601,529 |
| 2 | $7,851 | $36,254 | $593,678 |
| 3 | $8,340 | $35,765 | $585,337 |
| 4 | $8,860 | $35,245 | $576,477 |
| 5 | $9,413 | $34,693 | $567,064 |
| 6 | $10,000 | $34,106 | $557,065 |
| 7 | $10,623 | $33,482 | $546,442 |
| 8 | $11,285 | $32,820 | $535,157 |
| 9 | $11,989 | $32,117 | $523,168 |
| 10 | $12,736 | $31,369 | $510,432 |
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. Assume, for illustration, a 4.5% contract rate, so a 6.5% qualifying rate, plus property tax of 1% of the price a year and $150 a month for heat. The TDS math then lands them at a price of roughly $750,000, lower than the 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 in the calculator to see where your file lands.
How to use this calculator
- Enter your income and debtsInput your household gross annual income, any existing monthly debt payments (car loans, lines of credit, student loans), and your available down payment. Takes about 60 seconds.
- Review your affordability resultsThe calculator applies the federal stress test (contract rate + 2% or 5.25%, whichever is higher), computes your GDS and TDS ratios, and shows your maximum purchase price alongside estimated land transfer taxes and total cash needed to close.
- Talk to a broker and get pre-approvedYour calculator result is a solid estimate — your actual qualification depends on your credit, employment type, and the property. Book a free call with our team. We shop 100+ lenders and often secure rates lower than what your bank quotes.
How this is calculated
• Qualified at the stress-test rate of 6.14% (greater of contract +2% or 5.25%).
• Property tax estimated at 1.00% of price annually.
• Your down payment is 12.6% of this price, under 20%, so mortgage default insurance is required: a 3.30% premium ($19,452) is added to the loan, and the lender qualifies you on the total.
How much mortgage can I afford in Ontario?
What is the maximum mortgage I can afford in Canada?
How accurate is this affordability calculator?
Can I qualify at contract rate instead of the stress test?
What's included in cash-needed-at-closing?
Does this include CMHC insurance if I put less than 20% down?
What about my down payment from FHSA + RRSP HBP?
How does the mortgage affordability calculator work?
What is the mortgage stress test in Canada?
What are GDS and TDS ratios?
How much down payment do I need in Canada?
What closing costs should I budget for in Ontario?
Is my calculator result a guarantee of qualification?
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Find your market
Use our affordability calculator to explore purchase prices across Ontario's major markets — then connect with a local broker who knows the neighbourhood.