Mortgage Affordability Calculator Canada

How much mortgage can I afford in Canada?

Mortgage affordability in Canada is generally estimated using two debt-service ratios: GDS (Gross Debt Service) and TDS (Total Debt Service). Most insured-mortgage guidelines cap GDS at 39% and TDS at 44% of your gross monthly household income. Your mortgage must also pass the stress test, which qualifies you at a rate higher than your contract rate. This calculator combines these rules to estimate the maximum mortgage and home price you may be able to afford.

How mortgage affordability is calculated

First, the calculator finds your gross monthly income and applies the GDS and TDS limits to determine the maximum monthly mortgage payment you could qualify for. It subtracts non-mortgage housing costs (property taxes, heating, and 50% of condo fees) and other debt obligations from those limits. The smaller of the GDS and TDS allowances becomes the maximum qualifying mortgage payment. The calculator then solves for the maximum mortgage principal at the qualifying (stress-tested) interest rate over your chosen amortization, and adds your down payment to estimate the maximum home price.

What is GDS?

Gross Debt Service (GDS) is the percentage of your gross monthly income that goes toward housing costs: your mortgage payment, property taxes, heating costs, and 50% of condo fees. The general guideline caps GDS at 39%. If your housing costs exceed this, the GDS ratio becomes the limiting factor on how much you can borrow.

What is TDS?

Total Debt Service (TDS) adds all your other monthly debt obligations — credit card payments, vehicle loans or leases, student loans, and other recurring debts — on top of your housing costs. The general guideline caps TDS at 44% of gross monthly income. High non-housing debt can make TDS the limiting factor even when your housing costs alone are affordable.

What is the Canadian mortgage stress test?

The mortgage stress test requires lenders to qualify you at a rate higher than your actual contract rate. For most federally regulated lenders, the qualifying rate is the higher of your contract rate plus 2 percentage points or a floor rate set by OSFI (currently 5.25%). This helps ensure you could still afford your mortgage if interest rates rise. This calculator uses the same qualifying rate to estimate affordability.

How does down payment affect affordability?

A larger down payment increases the home price you can afford because the estimated home price equals the maximum mortgage plus your down payment. It may also reduce or eliminate mortgage default insurance, which is required when your down payment is below 20% (loan-to-value above 80%). When insurance is required, the premium is financed into the mortgage, increasing the amount you borrow and your monthly payment. In Canada, the minimum down payment is 5% on the first $500,000 of a home's price and 10% on the portion above $500,000 (up to $1.5 million); homes above $1.5 million require 20% down.

Why property taxes, heating and condo fees matter

Property taxes, heating costs, and 50% of condo fees are counted as housing costs in your GDS and TDS ratios. Because these reduce the mortgage payment you can qualify for, entering accurate monthly estimates gives a more realistic affordability result. Condo fees are counted at 50% because part of the fee covers items like reserve fund contributions that are not directly comparable to mortgage debt service.

Does mortgage affordability mean I will be approved?

No. This calculator provides a general estimate based on standard GDS/TDS limits and the stress test. It is not a mortgage approval, pre-approval, or lending decision. Lenders consider credit history, employment stability, property type, insurer requirements, and other factors this calculator does not evaluate. Always confirm your borrowing capacity with a licensed mortgage professional.

Mortgage affordability vs mortgage payment

This affordability calculator estimates how much you may be able to borrow. If you already know your mortgage amount and want to estimate the payment, use our Mortgage Calculator. The affordability calculator works backwards from your income and debts to find the maximum mortgage; the payment calculator works forwards from a mortgage amount to find the payment.

Frequently Asked Questions

How much mortgage can I afford in Canada?

Mortgage affordability in Canada is generally estimated using two debt-service ratios: GDS (Gross Debt Service) and TDS (Total Debt Service). Most insured-mortgage guidelines cap GDS at 39% and TDS at 44% of your gross monthly household income. The mortgage must also pass the stress test, which qualifies you at the higher of your contract rate plus 2 percentage points or a floor rate of 5.25%.

What income do I need for a $500,000 mortgage?

There is no single income figure, because affordability depends on your down payment, interest rate, amortization, property taxes, heating, condo fees and other debts. This calculator estimates the maximum mortgage and home price from your full financial picture rather than applying a fixed income-to-mortgage multiple.

What are GDS and TDS?

GDS (Gross Debt Service) is your monthly housing costs — mortgage payment, property taxes, heating, and 50% of condo fees — divided by your gross monthly income. TDS (Total Debt Service) adds all other monthly debt obligations (credit cards, vehicle loans, student loans, etc.) on top of housing costs. Lenders and insurers generally look for GDS at or below 39% and TDS at or below 44%.

What is the mortgage stress test in Canada?

The mortgage stress test requires lenders to qualify you at a rate higher than your actual contract rate. For most federally regulated lenders, the qualifying rate is the higher of your contract rate plus 2 percentage points or a floor rate set by OSFI (currently 5.25%). This helps ensure you could still afford payments if rates rise.

What qualifying rate does the calculator use?

This calculator uses the higher of your entered contract rate plus 2.00 percentage points or a 5.25% floor, matching the current OSFI Guideline B-20 minimum qualifying rate for federally regulated lenders. Some lenders or products may use a different qualifying rate.

Does a car loan reduce mortgage affordability?

Yes. A vehicle loan or lease payment is counted in your TDS ratio. Because TDS is capped at 44% of gross monthly income, higher debt payments reduce the amount available for your mortgage and therefore reduce the maximum mortgage and home price you may qualify for.

Do condo fees affect mortgage affordability?

Yes. Under the standard GDS/TDS calculation, 50% of your monthly condo fees are counted as a housing cost. This reduces the mortgage payment you can qualify for, which lowers the maximum mortgage amount.

Does a larger down payment increase affordability?

A larger down payment increases the home price you can afford because home price equals mortgage plus down payment. It may also reduce or eliminate the need for mortgage default insurance (required when your down payment is below 20%), which lowers the financed mortgage and the monthly payment.

Is mortgage affordability the same as mortgage approval?

No. This calculator provides a general estimate based on standard GDS/TDS limits and the stress test. It is not a mortgage approval, pre-approval or lending decision. Lenders consider credit history, employment stability, property type, insurer requirements and other factors that this calculator does not evaluate.

Can I get a 30-year amortization in Canada?

A 30-year amortization may be available depending on the lender, borrower, property and mortgage type. Insured-mortgage amortization rules can change and depend on eligibility, so availability is not guaranteed. This calculator is mathematically capable of 30-year amortization, but actual availability depends on your lender and mortgage eligibility.

Official Sources

Methodology is based on official Canadian mortgage affordability guidance. GDS/TDS limits: 39% / 44%. Stress test: contract rate + 2.00 percentage points or a 5.25% floor, whichever is higher. Last verified: September 2026.