Canada
Canada affordability calculator
How much home you can afford in Canada, using the debt-to-income rule with live Bank of Canada rates and provincial estimates.
Your finances
You could afford
Ontario, Canada · up to 36% of income on housing
$505,027
estimated maximum home price
- Monthly housing budget
- $3,200.00
- Down payment (20%)
- $101,005
- Loan amount
- $404,021
- Principal & interest
- $2,706.23
- Property tax + insurance
- $493.77
An estimate to help you plan — not financial advice or a loan offer. A guideline based on the 36% debt-to-income rule — lenders also weigh credit, employment, and reserves. Tax and insurance are estimated regional averages.
In Canada, how much you can afford is governed by two ratios — GDS (housing costs vs income) and TDS (all debts vs income) — plus the federal mortgage stress test, which qualifies you at a higher rate than you'll actually pay. This calculator estimates the priciest home that keeps you inside those limits.
How this calculator works
Lenders cap gross debt service (GDS) around 39% and total debt service (TDS) around 44% of income. Housing costs here include the mortgage, property tax, heat, and half of any condo fees.
The stress test requires you to qualify at the greater of your contract rate plus 2% or 5.25% — so approval is based on a higher rate than you'll pay, which lowers the affordable price.
Under 20% down adds CMHC insurance to the loan; the calculator shows how the down payment and rate move the final number.
A worked example
A $110,000 income with $400/mo of other debts, 20% down at 6.5% (Ontario costs):
- Monthly housing budget (44% TDS)
- $3,633/mo
- Most expensive home
- $575,965
Qualifying at the stress-test rate (not your contract rate) is why the affordable price looks conservative.
Who it's for
- You want a realistic budget under Canadian lending rules.
- You need to understand how the stress test caps your borrowing.
- You're comparing a 20%-down conventional purchase with an insured one.
Frequently asked questions
What is the Canadian mortgage stress test?
A federal rule that qualifies you at the greater of your contract rate plus 2% or 5.25%, even though you pay the lower contract rate. It's designed to ensure you could cope if rates rose.
What are GDS and TDS?
Gross Debt Service is housing costs as a share of income (cap ~39%); Total Debt Service adds all other debts (cap ~44%). Both must pass for approval.
How much home can I afford in Canada?
It depends on income, debts, and down payment, filtered through the GDS/TDS caps and the stress test. Enter your figures above for an estimate.
Does the stress test reduce how much I can borrow?
Yes — because you must qualify at a rate roughly two points above your actual rate, your maximum loan is smaller than the contract rate alone would allow.