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. Canadian lenders typically require GDS ≤ 39% and TDS ≤ 44%, though some lenders may be more flexible.

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
Estimated Monthly Payment $0

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 (P&I) $0
Property Tax $0
Heating $0
Condo Fees $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. The maximum GDS ratio is typically 39% and TDS ratio is 44%, but these may vary by lender. You must also pass the mortgage stress test at the higher of your contract rate + 2% or 5.25%. Always get pre-approved before house hunting.

Frequently Asked Questions

How much home can I afford in Canada?+
In Canada, lenders use two key ratios to determine affordability. Your Gross Debt Service (GDS) ratio — housing costs divided by gross income — must be 39% or less. Your Total Debt Service (TDS) ratio — all debts divided by gross income — must be 44% or less. As a general rule, your home price should not exceed 4–5 times your gross annual household income.
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?+
Yes, significantly. The stress test requires you to qualify at the higher of your contract rate plus 2% or 5.25%. For example, if your actual rate is 4.5%, you must qualify at 6.5%. This can reduce your maximum purchase price by roughly 15–20% compared to qualifying at your actual rate.
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.