Affordability calculator
Estimate a purchase-price budget using the mortgage stress test and the debt-service limits lenders and insurers use in Canada.
Estimated purchase-price budget
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- Mortgage amount (incl. any insurance)
- Monthly payment at your rate
- Stress-test qualifying rate
- Default insurance premium
How this estimate works
Lenders check that you could still afford your payments at a higher “qualifying rate”: the greater of your rate plus 2% and 5.25%. Housing costs (mortgage payment at that rate, property tax, heating and half of any condo fees) generally can’t exceed 39% of gross income (GDS), and all debts together 44% (TDS). The price is also capped by what your down payment allows (5% of the first $500,000, 10% above, 20% from $1.5 million). A 30-year amortization with less than 20% down is generally only for first-time buyers and new builds. Your credit history, employment and the property itself also matter, so this is not a pre-approval or a promise of approval. A lender’s pre-approval gives a firmer number; final approval depends on the lender’s review of your finances and the property.
Estimates are for illustration only. They are not a mortgage offer, approval, appraisal or tax advice. Confirm the numbers with your lender, lawyer or accountant.
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