How much home can I afford with my income?
As a rough rule, lenders let your housing costs (mortgage, tax, heat) take up to 32% of gross income (GDS) and all debts up to 40% (TDS). This calculator applies those limits plus the mortgage stress test to your exact numbers.
What is the mortgage stress test?
Canadian lenders qualify you at the higher of your contract rate plus 2% or 5.25%. The calculator uses the current qualifying rules automatically.
Does the down payment affect affordability?
Yes — a larger down payment lowers your mortgage amount and can eliminate CMHC insurance at 20% down, which raises the price you qualify for.