Our free Mortgage Affordability Calculator helps Canadian homebuyers determine how much house they can afford. Enter your income, debts, and down payment to instantly see your maximum purchase price, estimated monthly payments, and affordability ratio.
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- Mortgage Affordability Calculator
Mortgage Affordability Calculator
Mortgage Affordability Calculator Canada
Planning to buy a home in Canada? Our free Mortgage Affordability Calculator shows you how much house you can afford based on your income, debts, down payment, and rates. Instantly estimate the maximum purchase price and monthly payments, with interactive visuals and affordability ratios.
Free Canadian Mortgage Affordability Calculator
Mortgage Affordability Results
Max purchase price
$0
Estimated monthly payment
$0
Total monthly housing cost
$0
Affordability ratio housing cost ÷ gross income
0%
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How to Use the Mortgage Affordability Calculator
- Enter your annual income, monthly debts, and down payment.
- Set an interest rate, amortization period, and property taxes.
- Click calculate to see your max purchase price and monthly costs.
- Review your affordability ratio aim to keep housing ≤ 32% of gross income.
This tool provides estimates only. Lender decisions also consider credit score, stress test rates, and overall debt service ratios.
Mortgage Affordability Basics in Canada
Key ratios lenders use
- GDS mortgage principal and interest, taxes, heating, 50 percent condo fees ÷ gross income target ≤ 32 percent.
- TDS GDS plus all other monthly debts ÷ gross income target ≤ 40–44 percent.
- Stress test you must qualify at the higher of 5.25 percent or contract rate plus 2 percent.
Down payment rules
- 5 percent for the first 500,000
- 10 percent for the portion from 500,000 to 999,999
- 20 percent minimum for homes 1,000,000 plus
Tips to increase affordability
- Reduce other monthly debts before applying
- Increase down payment or extend amortization if eligible
- Compare fixed vs variable and different terms
Actual lending limits vary by lender and province. Always confirm details with your broker or lender.
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Mortgage Affordability FAQs Canada
What is mortgage affordability
It is the maximum home price you can qualify for based on your income, debt, and expenses. Lenders use GDS and TDS ratios to assess this.
What is the GDS ratio
Gross Debt Service compares core housing costs to gross income. Most lenders target 32 percent or lower.
What is the TDS ratio
Total Debt Service includes housing plus other debts like car loans and credit cards. Targets are usually 40 to 44 percent.
What is the mortgage stress test
In Canada you must qualify at the higher of 5.25 percent or your contract rate plus 2 percent. It ensures you can handle rate increases.
How much down payment do I need
Minimums are 5 percent up to 500,000, 10 percent for the portion up to 999,999, and 20 percent for homes priced 1,000,000 or more.
Does debt affect affordability
Yes, higher monthly debt lowers the payment you can allocate to housing, reducing your maximum purchase price.
What about closing costs
Budget for legal fees, title insurance, appraisal, inspections, and land transfer tax where applicable. These are separate from your mortgage.
Can self-employed borrowers use this calculator
Yes. Enter verifiable gross income and debts. Lenders may also review business financials and tax returns.
How accurate is this calculator
It provides realistic estimates, but approvals depend on credit, income stability, property type, and lender guidelines.
