Mortgage Affordability Calculator Canada

Use this free Canadian mortgage affordability calculator to estimate how much home you can afford based on your income, debt payments, interest rate, amortization period, and down payment.

Stress test uses rate + 2% or 5.25%, whichever is higher
Car loans, student loans, credit card minimums
Estimate ~0.8–1.2% of home value per year
Lenders use ~$150/mo as standard estimate

50% of condo fees are included in GDS by lenders

How the Mortgage Affordability Calculator Works

Mortgage lenders in Canada typically use affordability guidelines to determine how much home buyers can borrow. A common rule is that your housing costs should not exceed 39% of your gross monthly income. This includes your mortgage payment, property taxes, and heating costs.

Our calculator estimates the maximum mortgage you may qualify for based on this guideline and subtracts any existing debt obligations such as car loans, student loans, or credit card payments.

Lenders also apply the Canadian mortgage stress test: you must qualify at the greater of your contract rate plus 2 percentage points or 5.25%, even though you pay the contract rate.

Canada's Tiered Down Payment Requirements

Canadian minimum down payment rules in force since December 15, 2024.
Canadian Mortgage Down Payment Tiers ChartA visual guide showing down payment requirements in Canada: 5% for under $500k, tiered for $500k to $1.5M, and 20% for homes at $1.5M or more.Under $500k5% Flat$500k - $1.5M5% of first $500k+ 10% of remainder$1.5M and up20% FlatDOWN PAYMENT %

*Example: A $700k home requires $25k (5% of 500k) + $20k (10% of 200k) = $45k total. A $1.2M home requires $25k + $70k = $95k.

Canadian Mortgage Qualification Rules

Gross Debt Service (GDS)

Measures housing costs against your income.

  • Mortgage principal & interest
  • Property taxes & Heating
  • 50% of condo fees

Limit: 39%

Total Debt Service (TDS)

Includes housing costs plus all other debts.

  • Car loans & Student loans
  • Credit card minimums
  • Line of credit payments

Limit: 44%

Frequently Asked Questions

How much mortgage can I afford in Canada?

Insured lenders cap your Gross Debt Service ratio at 39% of gross income and your Total Debt Service ratio at 44%, both tested at the stress-test rate. The exact amount also depends on your credit score, debts, down payment, and interest rate.

What income is required for a $500,000 mortgage in Canada?

It depends on the interest rate, amortization, down payment, and existing debts. As a rough guide, households often need between $100,000 and $120,000 of income to qualify for a $500,000 mortgage with little other debt. Use the calculator above with your own rate to check.

How does the mortgage stress test affect affordability?

Lenders must qualify you at the greater of your contract rate plus 2 percentage points or 5.25%. That lowers the maximum mortgage most borrowers qualify for. Since November 2024, the test no longer applies when you switch an uninsured mortgage to another federally regulated lender at renewal without increasing the amount or amortization.

How much down payment do I need in Canada?

5% of the price up to $500,000, plus 10% of any portion above that, for homes priced under $1,500,000. Homes at $1,500,000 or more cannot be insured and need at least 20% down.

Renewing instead of buying?

Use the mortgage renewal calculator to see your payment at the rate you are offered, and read the 2026 renewal checklist for when you can switch without requalifying.

Rules and limits used by this calculator

Last verified against the sources below on .

Disclaimer

This calculator provides estimates only and should not be considered financial advice. Actual mortgage qualification depends on several factors including credit score, lender policies, property taxes, and current mortgage rates.