Find out how much house you can afford in Canada. Lenders check that you could still pay at the stress test rate, the higher of 5.25% or your rate plus 2%, and that housing costs stay within 39% of income (GDS) and all debts within 44% (TDS). A household earning $120,000 with $100,000 down and a 4.5% rate can afford about $581,488.
Mortgage Affordability Calculator
Stress test, GDS/TDS limits and CMHC insurance · Updated October 12, 2026
- Mortgage amount (incl. CMHC premium)
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- CMHC insurance premium
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- Monthly payment at your rate
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- Stress test (qualifying) rate
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- Payment you must qualify at
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- GDS ratio (limit 39%)
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- TDS ratio (limit 44%)
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- What limits you
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Uses the CMHC limits for insured mortgages. Lenders set their own limits for uninsured mortgages and may be stricter. Canadian fixed rates compound semi-annually.
How lenders decide what you can afford
- Stress test: you must qualify at the greater of 5.25% or your contract rate plus 2 percentage points. At 4.5%, you qualify at 6.5%.
- GDS (gross debt service): mortgage payment at the qualifying rate, property tax, heating and half of any condo fees must be no more than 39% of gross monthly income.
- TDS (total debt service): the same costs plus your other monthly debt payments must be no more than 44%.
- Down payment: at least 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% at $1.5 million or more.
If you put down less than 20%, the mortgage must be insured and the CMHC (or private insurer) premium is added to the loan. The stress test also applies to uninsured mortgages through OSFI’s guideline B-20, but since November 21, 2024 you don’t have to requalify if you switch lenders at renewal without borrowing more.
How much house can I afford on my income?
| Household income | Maximum price |
|---|---|
| $60,000 | $279,077 |
| $80,000 | $368,757 |
| $100,000 | $460,557 |
| $150,000 | $665,808 |
| $200,000 | $850,000 (limited by the down payment) |
CMHC insurance premiums
| Loan-to-value | Premium on the loan |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
Since December 15, 2024, insured mortgages can be used for homes up to $1.5 million, and all first-time buyers and buyers of newly built homes can choose a 30-year amortization.
FAQ
Does the stress test apply if I have 20% down?
Yes. Federally regulated lenders apply the same minimum qualifying rate to uninsured mortgages. Some credit unions regulated by the provinces use different rules.
What counts as a monthly debt payment?
Car loans and leases, minimum credit card payments (often 3% of the balance), lines of credit, student loans, support payments and any other mortgages.
Related calculators
- Mortgage Payment CalculatorPayments with CMHC insurance
- FHSA CalculatorSave your down payment tax-free
Sources
- OSFI: Minimum qualifying rate for uninsured mortgages
- CMHC: Purchase (GDS and TDS limits)
- CMHC: Mortgage loan insurance premiums
- FCAC: Down payment
- Department of Finance: Mortgage reforms in force December 15, 2024
Figures current as of October 12, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.