Housing Affordability Calculator
Enter your income, down payment, debts and rate to estimate the mortgage and home price a Canadian lender would likely approve.
Car loans, credit cards, student loans.
Plus $0 for property tax and heat.
Under 20% requires CMHC mortgage insurance, added to your loan.
Enter amounts to see this chart.
Enter amounts to see this chart.
Lenders qualify these tests at the stress-test rate, so your approved payment is lower than the payment at your real rate.
| Test | Limit | Room for housing |
|---|---|---|
| GDS — housing costs | 39% of gross income | $0 |
| TDS — all debt | 44% of gross income | $0 |
| Stress test rate used | 5.25% | $0 |
What this means
Lenders qualify you at the stress-test rate (5.25%), not your actual rate, so your approval is lower than your real payment suggests. Budget for closing costs, land transfer tax, maintenance and insurance on top.
How it works
Canadian lenders use two ratios: GDS (housing costs vs income, max ~39%) and TDS (all debt payments vs income, max ~44%). The mortgage stress test requires you to qualify at roughly 2% above your contract rate or 5.25%, whichever is higher.
Estimate only. Real approvals depend on your credit score, employment, the lender's rules, CMHC insurance and the property itself.
Nothing you type here is saved or sent anywhere — it stays in your browser.
GDS and TDS ratios
Lenders test two ratios. GDS caps housing costs — mortgage payment, property tax, heat and half of any condo fees — at roughly 39% of gross income. TDS adds all other debt payments and caps the total near 44%. Whichever limit you hit first sets your maximum.
The mortgage stress test
Federally regulated lenders qualify you at the greater of your contract rate plus 2% or the minimum qualifying rate. You must show you could still afford the payment at that higher rate, which is why approvals come in below what today's rate alone suggests.
Down payment and CMHC insurance
The minimum is 5% on the first $500,000 and 10% on the portion above it. Under 20% down requires mortgage default insurance, whose premium is normally added to the mortgage. Budget for closing costs — land transfer tax, legal fees and inspection — on top of the down payment.
Common questions
- Is approval the same as affordable?
- No. Lenders test ratios, not your life. Many buyers deliberately borrow below their maximum to keep room for savings and rate increases.
- Are these figures exact?
- They are estimates using current Canadian ratio and stress-test rules. Your lender's underwriting, credit score and property costs will shift the final number.
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