Mortgage Affordability in Canada: How Much House Can You Buy?
Understand how lenders assess affordability using GDS/TDS ratios, the stress test, and your down payment. Try the interactive calculator below.
🔑 Key Factors Lenders Use
Income
Household gross (pre-tax) income determines monthly capacity.
GDS/TDS
GDS ≤ 39% (mortgage + tax + heat + 50% condo fees).
TDS ≤ 44% (GDS + all other debts).
Down Payment
Minimum: 5% (<$500k), 5%+$10% (to $999,999), 20% (≥$1M). More down = lower payment.
Rate & Amortization
Stress test uses the greater of 5.25% or (your rate + 2%). Longer amortization lowers payment.
📊 Quick Examples (Illustrative)
First-Time Buyer
- Income: $80,000
- Down: $40,000
- Debts: $100/mo
- Rate: 5.25% (stress)
Approx. price: $450k–$475k
Growing Family
- Income: $120,000
- Down: $60,000
- Debts: $700/mo
- Rate: 5.25% (stress)
Approx. price: $600k–$650k
High-Income Couple
- Income: $200,000
- Down: $150,000
- Debts: $0
- Rate: 5.25% (stress)
Approx. price: $1,000,000+
🧮 Affordability Calculator (Canada GDS/TDS + Stress Test)
⚠️ Disclaimer
This calculator and examples are for educational purposes only and use simplified assumptions. Actual qualification depends on full underwriting, credit profile, property type, taxes, heat, condo fees, insurance, and lender policies.
For accurate, personalized affordability and rates, please consult a licensed mortgage agent or your bank.
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