Calculators›How Much Can I Afford?
The number a lender will actually approve, driven by the two debt-service ratios (GDS & TDS) and the federal stress test, with CMHC insurance folded in. Watch the gauges move as you adjust.
This is what the math says you qualify for. We help you actually get it. Pre-approval is free, with no commitment.
Book a pre-approval →Gauges show your ratios at the contract rate; qualifying uses the stress-test rate. LTT, legal fees, and other closing costs are extra. See the Land Transfer Tax calculator.
The mechanics
Lenders don't ask "what can you pay?" Instead, they run your numbers through fixed federal rules. Here's the machinery behind your maximum.
Two debt-service ratios decide your limit. GDS (Gross Debt Service) is your housing cost (principal, interest, property tax, and heat) as a share of gross monthly income, capped at 39%. TDS (Total Debt Service) adds every other monthly obligation (car, credit cards, student loans), capped at 44%. Your mortgage is limited by whichever bites first.
Since 2018, federally regulated lenders must qualify you at the higher of your contract rate plus 2%, or 5.25%, so you can still carry the mortgage if rates climb. This calculator qualifies you at the stress rate, then shows your real payment at the contract rate.
With less than 20% down, your mortgage is high-ratio and needs CMHC (or Sagen / Canada Guaranty) insurance. The premium, 2.80% to 4.00% of the mortgage depending on your down payment, is added to the loan, not paid in cash. Purchases above $1.5M can't be insured and require 20% down.
Closing costs sit on top: legal fees ($1,500–$2,500), title insurance (~$300), inspection ($400–$600), land transfer tax, and PST on the CMHC premium (8% in Ontario). Budget another 1.5–4% of the price. Lenders use slightly different formulas and may approve more or less, so get pre-approved for the real number.
This is an estimate. Your actual approval depends on verified income, credit, and the lender. We shop 30+ of them to find the one that reads your file most generously.
Three free tools to run the numbers before you talk to a broker.
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