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Homeโ€บCanadaโ€บMortgage Affordability Calculator

Mortgage Affordability Calculator Canada 2025

Find out how much home you can afford. GDS/TDS ratios, stress test qualification, and what-if scenarios for rate changes and debt payoff.

$
Your annual income before tax
%
Expected contract rate (not stress test)
$
Your savings for down payment
$
Car, student loan, credit card minimums
$
Gross annual income of co-borrower
Max 25 years for insured mortgages
$
Leave at $0 to auto-estimate (1% of home value)
$
Lenders typically use $100-200/month
$
50% counted toward GDS ratio
โ€”
Estimates for planning purposes. Actual approval depends on lender criteria, credit score, and full financial assessment.

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How to Use This Calculator

Tab "How Much Can I Afford?"

Enter your gross annual income (or two incomes), monthly debts, down payment saved, and interest rate. Under "More options," add property tax, heating, and condo fees. See the maximum home price, mortgage amount, GDS/TDS ratios, and stress test qualification.

Tab "What-If Scenarios"

Enter your base income and target home price. Adjust sliders for rate changes, debt payoff, or adding a second income. See how each change affects your maximum affordability in real time.

Tab "Two-Income Scenario"

Enter Income 1 and Income 2 separately with combined debts. Compare qualifying on one income alone vs both combined โ€” useful for couples planning their home purchase.

The Formulas

GDS ratio (max 39%):
GDS = (Mortgage + Property tax + Heating + 50% condo fees) รท Gross income

TDS ratio (max 44%):
TDS = (Housing costs + All other debt payments) รท Gross income

Stress test rate:
Qualifying rate = max(5.25%, contract rate + 2%)

Semi-annual compounding (Canadian mortgages):
Monthly rate = (1 + annual/2)^(1/6) โˆ’ 1

CMHC insurance:
5-9.99% down: 4.00% | 10-14.99%: 3.10%
15-19.99%: 2.80% | 20%+: none required
Max insured purchase: $1,500,000

Example

The Singhs โ€” Couple in Vancouver, Combined $150,000 Income

$500/mo car loan, $200/mo student loan. Rate: 4.79%. Down payment: $100,000.

Stress test rate6.79% (4.79% + 2%)
Max mortgage (GDS)$548,000
Max mortgage (TDS)$502,000 (binding)
Max home price$602,000
If car loan paid off$685,000 (+$83K)

Frequently Asked Questions

Yes. Since 2018, the stress test applies to all federally regulated mortgage lenders, for both insured and uninsured mortgages. Even if you have 20%+ down payment, you must qualify at the higher of 5.25% or your contract rate plus 2%. Some credit unions (provincially regulated) may not require the stress test, but most still apply it.
All recurring debt obligations: car loans, student loans, lines of credit (typically 3% of balance as payment), credit card minimum payments (typically 3% of balance), personal loans, child/spousal support, and any co-signed loans. Lenders will pull your credit report to verify all debts.
30-year amortization is available for uninsured mortgages (20%+ down payment) and for first-time buyers purchasing new builds with insured mortgages. Standard insured mortgages have a maximum 25-year amortization. Longer amortization lowers monthly payments but increases total interest significantly.

Related Calculators

๐Ÿ  Mortgage Calculator
Monthly payment with CMHC and prepayment.
๐Ÿ˜๏ธ Land Transfer Tax
Closing cost by province and city.
๐Ÿก Home Buyers' Plan
Withdraw $60K from RRSP for first home.
๐Ÿ’ต Take-Home Pay
Net pay for budgeting mortgage payments.

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