Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment. Our calculator uses Canadian lending rules including the mortgage stress test to give you a realistic budget.
Affordability calculator unavailable
Finance-policy config is required before GDS/TDS limits, stress-test rate, CMHC premiums, and mortgage defaults can be calculated.
Disclaimer: The estimates and calculations shown above are for illustrative purposes only and should not be relied upon as financial advice. Actual mortgage rates, terms, and eligibility depend on your personal financial situation, credit history, and current market conditions. Please consult a licensed mortgage broker, financial advisor, or your bank to determine your actual affordability and costs before making any purchasing decisions.
Understanding Affordability in Canada
Canadian lenders use specific ratios and stress tests to determine how much you can borrow. Here is what you need to know before applying for a mortgage.
GDS Ratio Explained
The Gross Debt Service (GDS) ratio measures the percentage of your gross income needed to cover housing costs:
- Includes mortgage payments, property taxes, and heating costs
- Must stay within the configured lender-policy threshold
- Does not include non-housing debts like car loans or credit cards
TDS Ratio Explained
The Total Debt Service (TDS) ratio includes all your monthly debt obligations on top of housing costs:
- Includes everything in GDS plus car loans, credit cards, student loans, and other debts
- Must stay within the configured lender-policy threshold
- High existing debt reduces how much mortgage you can qualify for
Stress Test Explained
The Canadian mortgage stress test ensures you can afford your mortgage even if interest rates rise:
- You must qualify at the higher of your contract rate plus the configured stress-test addition or the configured qualifying-rate floor
- This means your actual borrowing power is lower than your contract rate alone would suggest
- The stress test applies to all mortgage applications in Canada, including renewals and switches
Ready to take the next step?
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