Mortgage Affordability Calculator

Mortgage Affordability Calculator

Estimate the maximum home price you may qualify for, based on Canadian lenders' GDS/TDS ratios and stress test rules.

Lenders qualify you at a higher "stress test" rate
Maximum affordable home price $0
Stress test qualifying rate0%
Maximum mortgage amount$0
GDS limit (39%)$0
TDS limit (44%)$0
Limiting factor-
Uses the same method Canadian lenders apply: the GDS (Gross Debt Service, max 39%) and TDS (Total Debt Service, max 44%) ratios of gross income, qualified at the stress test rate = MAX(contract rate + 2%, 5.25%) under current rules. This tool does not add the CMHC insurance premium (if down payment is under 20%) to the loan, which may slightly reduce the amount you actually qualify for. Individual lenders may apply stricter or more lenient criteria depending on your credit profile.
This tool provides estimates for general informational purposes only and does not constitute financial, insurance, tax, or legal advice. Actual figures may vary depending on your lender/insurer, individual circumstances, and current market conditions. InsureFiHub is not responsible for financial decisions made based on these results.

Before you start house hunting, it helps to know roughly what a lender will actually approve you for — which usually isn't the same number you'd expect based on the mortgage rate you see advertised. This calculator applies the same GDS/TDS ratios and mortgage stress test Canadian lenders use to estimate your maximum affordable home price.

How This Calculator Works

Canadian lenders qualify you using two ratios of your gross monthly income:

  • GDS (Gross Debt Service), max 39% — your mortgage payment, property tax, and heating costs combined.
  • TDS (Total Debt Service), max 44% — GDS plus all other debt payments (car loans, credit cards, student loans, etc.).

Both ratios are calculated using the mortgage stress test qualifying rate — the higher of your contract rate plus 2%, or 5.25% — not the actual rate on your mortgage. Whichever ratio produces the lower affordable payment (GDS or TDS) becomes your limiting factor, and that payment is converted back into a maximum home price.

Frequently Asked Questions

What is the mortgage stress test in Canada?

It's a federal requirement that lenders qualify you at a higher "stress test" rate — the greater of your actual contract rate plus 2%, or 5.25% — rather than your real interest rate, to confirm you could still afford your payments if rates rose.

What are GDS and TDS ratios?

GDS (Gross Debt Service) is your mortgage payment, property tax, and heating costs as a share of gross income, capped at 39%. TDS (Total Debt Service) adds in all your other debt payments and is capped at 44%. Lenders use whichever ratio is more restrictive.

Why doesn't my affordability estimate include the CMHC premium?

This calculator estimates affordability based on the loan itself; if your down payment is under 20%, the CMHC premium is usually added to your mortgage principal, which slightly increases your total loan and could modestly reduce the maximum price you actually qualify for.

Can a lender approve me for more or less than this estimate?

Yes — this uses the standard GDS/TDS/stress test method most federally regulated lenders follow, but individual lenders can apply stricter or more flexible criteria depending on your credit score, employment type, and overall financial profile.