Mortgage Affordability Calculator Canada 2026

Find out how much house you can afford in Canada. Calculate your maximum purchase price based on income, debts, down payment, and current mortgage rates.

FAQ

What is the mortgage stress test and why does it matter?

The stress test requires lenders to qualify you at a rate higher than your actual contract rate — specifically the greater of your contract rate plus 2% or the Bank of Canada's minimum qualifying rate. This means you must prove you can afford payments at the higher rate, even though you'll actually pay the lower contract rate. The stress test reduces your maximum borrowing power but protects you from payment shock if rates rise during your term.

What is the difference between GDS and TDS ratios?

The GDS ratio measures your housing costs — mortgage payments, property taxes, heating, and 50% of condo fees — as a percentage of your gross income. The TDS ratio adds all your other monthly debt payments (car loans, lines of credit, credit card minimums, student loans) to the GDS calculation. Lenders require GDS to be at or below 39% and TDS at or below 44%, though some lenders may have slightly different thresholds for insured versus uninsured mortgages.

How does my down payment affect what I can afford?

A larger down payment directly increases your maximum purchase price because you're borrowing less. Minimum down payment rules depend on price — 5% for homes up to $500,000, 10% on the portion between $500,000 and $1,499,999, and 20% for homes at $1,500,000 or more. With less than 20% down, you'll also need CMHC mortgage insurance, which adds a premium of 2.8% to 4% of the mortgage amount to your balance. Insured mortgages have traditionally been limited to a 25-year amortization, though first-time buyers and buyers of new builds can now access 30-year amortization.

Are there special rules for first-time home buyers?

Yes. First-time buyers can access the Home Buyers' Plan (HBP) to withdraw from their RRSP for a down payment, and the First Home Savings Account (FHSA) for tax-free savings toward a home. Some provinces offer land transfer tax rebates for first-time buyers. The federal First-Time Home Buyer Incentive (shared equity program) was discontinued, but the first-time home buyer tax credit remains available.

How does this calculator work?

The calculator applies the same qualification criteria Canadian lenders use — enter your gross household income, monthly debt payments, available down payment, and current mortgage rate. It computes your maximum mortgage based on both GDS and TDS ratios, then takes the lower of the two as your qualifying amount. The stress test is applied automatically at the higher of your contract rate plus 2% or the Bank of Canada's minimum qualifying rate. Estimated property taxes, heating costs, and CMHC insurance premiums (for down payments below 20%) are also factored in.