Home Affordability Calculator

How Much House Can You Afford?

This calculator uses the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios used by Canadian lenders to determine your maximum home purchase price. For insured mortgages, CMHC restricts GDS to 39% and TDS to 44%. This calculator also applies the mortgage stress-test qualifying rate and includes 50% of condo fees in the debt-service calculation.

Your Income

Your Debts

Down Payment & Mortgage Details

Maximum Home Price You Can Afford

$0

Based on Canadian lending standards (GDS & TDS ratios)

Maximum Mortgage Amount $0
Down Payment $0
Qualifying Monthly Housing Cost $0
Stress-Test Qualifying Rate 0.00%

Debt Service Ratios

Gross Debt Service (GDS)
Housing costs / Income (max 39%)
0%
Good
Total Debt Service (TDS)
All debts / Income (max 44%)
0%
Good

Monthly Housing Costs Breakdown

Mortgage Payment at Qualifying Rate (P&I) $0
Property Tax $0
Heating $0
Condo Fees Used for Qualification (50%) $0
⚠️ Important Information: This calculator provides estimates based on standard Canadian lending criteria. Actual qualification amounts depend on your credit score, employment history, and specific lender requirements. For insured mortgages, CMHC restricts GDS to 39% and TDS to 44%. This calculator uses the higher of your contract rate + 2% or 5.25% as the qualifying rate and includes 50% of condo fees in GDS/TDS. Lenders may apply additional underwriting requirements, so always obtain a formal pre-approval before house hunting.

Frequently Asked Questions

How much home can I afford in Canada?+
In Canada, mortgage qualification commonly uses Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. CMHC restricts GDS to 39% and TDS to 44% for insured mortgages. Affordability also depends on your qualifying interest rate, down payment, property taxes, heating costs, condo fees, and other debt payments.
What is the GDS ratio and why does it matter?+
The Gross Debt Service (GDS) ratio measures your monthly housing costs (mortgage payment, property tax, heating, and 50% of condo fees) as a percentage of your gross monthly income. Canadian lenders require a GDS of 39% or less. Exceeding this limit is one of the most common reasons mortgage applications are declined.
What is the TDS ratio?+
The Total Debt Service (TDS) ratio includes all your monthly housing costs plus all other monthly debt obligations (car loans, credit cards, student loans) as a percentage of your gross monthly income. Canadian lenders require a TDS of 44% or less. High consumer debt is the fastest way to reduce your maximum home purchase price.
Does the mortgage stress test affect affordability?+
Where the federal mortgage stress test applies, qualification uses the higher of your contract rate plus 2% or 5.25%. For example, a 4.5% contract rate is tested at 6.5%. The effect on your maximum purchase price varies with income, debts, down payment, taxes, heating, condo fees and amortization.
Can I use co-applicant income to increase affordability?+
Yes. Adding a co-applicant (spouse, partner, or co-signer) combines both incomes for GDS and TDS calculations, which can significantly increase your maximum home price. However, the co-applicant's debts are also included in the TDS calculation, so the net benefit depends on their debt load.
Does condo fees affect how much I can borrow?+
Yes. Canadian lenders include 50% of monthly condo fees in your GDS ratio calculation. High condo fees directly reduce the mortgage payment you can qualify for, which in turn lowers your maximum purchase price. This is an important factor to consider when comparing condos to freehold properties.