Mortgage Affordability Calculator (Canada, 2026 Stress Test)

Find the highest home price you qualify for, using the same GDS and TDS tests and stress-test rate that lenders use. Add a co-applicant and your real debts. A comfortable price sits beside the maximum. Flip it around to see the income you would need for a home you have in mind.

I want to know
First-time buyer?
You
$
Before tax. Include salary, bonus and self-employment income (a 2-year average)
$
Partner or co-signer. 0 if buying alone
$
The mortgage and the home
%
years
$
0 = use the 32% rule of thumb
More options
You
$
$
Lenders count 3% a month
$
Also counted at 3% a month
$
$
Child support, other loans
The mortgage and the home
$
$
$
You can afford a home up to$671,800A $636,272 mortgage (including $24,472 of insurance) with your $60,000 down. Payment $3,521.59 a month at 4.5%, about $3,972 with tax and heat. What limits you: your income (the GDS limit). Comfortably, at 32% of income, aim for about $554,700 ($2,822.91 a month).
Lender's testYoursLimit
Housing costs (GDS)39.0% · $4,712/mo39% · $4,713/mo
Housing + $450/mo debts (TDS)42.7% · $5,162/mo44% · $5,317/mo
Payment at the 6.50% stress-test rate$4,261.90
Minimum down payment at $671,800$42,180
Ratios are shares of $145,000 income; insured (under 20% down) limits
What would raise the number
Earn $10,000 more a year+$46,700 → $718,500
Add $20,000 to the down payment+$25,400 → $697,200
Clear $300 a month of debt paymentsno change
Rate 0.5% lower+$28,700 → $700,500
30-year amortization+$41,200 → $713,000
Show the math

Lenders cap your housing costs (mortgage payment at the stress-test rate + property tax + heat + half of condo fees) at 39% of gross income (GDS) and housing costs plus other debt payments at 44% (TDS). Credit-card and line-of-credit balances count as 3% a month. The stress-test rate is the higher of your rate + 2% and 5.25%. Down payment: 5% of the first $500,000 and 10% of the rest under $1,500,000, 20% at or above it; under 20% down the CMHC premium is added to the loan. The maximum price is found by bisection because the premium and the tiers make it non-linear. "Comfortable" uses CMHC's 32% rule of thumb in place of the GDS limit. Lenders also look at credit score and history, which this cannot see.

How this calculator works

Lenders in Canada approve an insured mortgage when two ratios pass at the stress-test rate. Both are shares of gross monthly income.

  • GDS (gross debt service) = (mortgage payment + property tax + heating + 50% of condo fees) ÷ gross monthly income, at most 39%.
  • TDS (total debt service) = GDS costs + all other debt payments, at most 44%.

The mortgage payment in those ratios is calculated at the minimum qualifying rate, the greater of your contract rate plus 2% and 5.25%, over your amortization with semi-annual compounding.

The calculator searches for the highest price at which both ratios pass, your down payment meets the minimum for that price, the price is under the insured cap when the down payment is below 20%, and the CMHC premium is included in the mortgage. It then reports the ratio or rule that stopped it going higher.

Worked example: $120,000 income, $60,000 down, $400 a month of other debts, Ontario

LineAmount
Stress-test rate (4.5% + 2%)6.50%
Maximum price$559,500
Mortgage incl. CMHC premium of $15,485$514,984.50
Qualifying payment at 6.50%$3,449.49 a month
Actual payment at 4.5%$2,850.30 a month
GDS / TDS at the maximum39.0% / 43.0%
Binding ruleGDS

Assumptions

  • Property tax and heating are entered as monthly amounts. The calculator does not estimate them from the price. The property tax calculator gives the real rate for 102 cities.
  • Ratios use the CMHC insured-mortgage limits of 39% and 44%. Some lenders apply lower limits, especially for uninsured mortgages or lower credit scores.
  • The down payment is assumed to be saved (not borrowed) and closing costs are extra.
Common questions

Frequently asked questions

How much mortgage can I get on my salary?
As a rule of thumb, about four to four and a half times gross household income at 2026 rates, before debts. The precise answer depends on the stress-test rate, property tax, heating, condo fees and other debt payments, which is what the calculator solves for.
What are GDS and TDS?
Gross Debt Service is your housing costs (mortgage payment, property tax, heating and half of condo fees) as a share of gross income. Insured mortgages allow up to 39%. Total Debt Service adds all other debt payments, with a limit of 44%. Lenders test both at the stress-test rate, not your actual rate.
Does a bigger down payment let me buy more?
Yes, twice over. It reduces the mortgage for the same price, and below 20% down it sets the maximum price directly: 5% of the first $500,000 and 10% of the rest. With 20% or more down the insurance premium disappears too, and homes of $1.5 million or more become possible.
Does my partner's income count?
Yes, if they are on the mortgage application. Enter it as the co-applicant income. Lenders add both incomes and both sets of debts. A co-signer who does not live in the home is treated the same way for the ratios.
How do lenders count my credit card and line of credit?
By balance, not by what you pay. Most lenders assume 3% of the outstanding balance as a monthly payment even if you pay it off in full each month. A $10,000 line of credit balance therefore costs you about $300 a month of qualifying room, which can be $60,000 or more of house price.
Why is the comfortable price lower than the maximum?
The maximum uses the lender's ceilings: 39% of gross income on housing and 44% including debts, at the stress-test rate. Many people find that too tight once daycare, cars and savings are counted. The comfortable figure uses CMHC's traditional 32% rule or a monthly budget you set yourself.
What income do I need for a $700,000 home?
Switch to the income mode and enter the price. With 10% down, a 4.5% rate and no other debts, about $150,000 of household income qualifies for $700,000 in 2026. A $500 car payment raises that by roughly $15,000. The exact figure depends on property tax and heat in your area.
Does the calculator include closing costs?
No. Budget separately for land transfer tax, legal fees, title insurance, an inspection, moving costs and the sales tax on the CMHC premium, which is paid in cash at closing. The mortgage payment calculator adds those up.
Will I actually be approved for this amount?
Not necessarily. Lenders also look at credit score (600 minimum for insured mortgages), employment history, the property, and their own internal ratio limits, which can be tighter than 39 and 44. Treat the result as an upper bound.
Sources

Sources

Every figure on this page comes from one of these primary sources. Data last verified .

  1. CMHC, CMHC Purchase (debt service ratio limits)
  2. Department of Finance Canada, Statement on the minimum qualifying rate (December 2022)
  3. OSFI, Minimum qualifying rate for uninsured mortgages
  4. FCAC, How much you need for a down payment
  5. CMHC, Premium information for homeowner and small rental loans
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Data verified for tax year 2026: Updated By Nishant Malik, founder of GlassLayer