Mortgage Affordability & Stress Test Calculator
How much home can you actually afford? This estimates your maximum mortgage and purchase price the way a Canadian lender would — applying the stress test and the GDS/TDS debt-ratio limits to your income, debts, and down payment. First understand the rules in qualifying for a mortgage.
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Frequently asked questions
What is the mortgage stress test?
To qualify for a mortgage in Canada you must prove you could afford payments at a higher rate than your actual one — the greater of your contract rate + 2% or 5.25%. It doesn’t change the rate you pay; it just limits how much you can borrow, leaving a cushion if rates rise.
What are GDS and TDS?
GDS (Gross Debt Service) is the share of your gross income going to housing — mortgage, property tax, heat, and half of condo fees — usually capped around 39%. TDS (Total Debt Service) adds all your other debt payments and is usually capped around 44%. This calculator uses both and takes the lower result.
Why does paying off other debt increase how much I can borrow?
Your other debt payments count against your TDS limit, so every dollar of monthly debt payment directly reduces the mortgage payment you can carry. Clearing a car loan or credit card before applying can meaningfully raise your maximum.
Does this include CMHC insurance, property tax, and other costs?
It uses your estimated property tax, heat, and condo fees in the ratios. If your down payment is under 20%, CMHC mortgage insurance applies and is added to the loan (we flag this). It doesn’t include closing costs, land transfer tax, or maintenance — budget for those separately.
Is this an approval?
No — it’s an estimate to help you shop with a realistic budget. Actual approval depends on your credit, the exact lender’s rules, the property, and documentation. Get a pre-approval for a firm number.