Mortgage Affordability Calculator
How Much Home Can You Afford?
Use this calculator to estimate your maximum purchase price based on Canadian mortgage rules, including the mandatory stress test. Get personalized scenarios and see how different down payments affect your buying power.
Multiple Scenarios
Compare 5%, 10%, and 20% down payment options
Stress Test Included
Uses official Canadian stress test rates
Closing Costs
Full breakdown including land transfer taxes
Affordability Calculator
Income
Before taxes, all household earners
Car loans, credit cards, student loans, etc.
Mortgage
Minimum 5% for homes under $500K
Current 5-year fixed rates around 5-6%
Monthly Costs
Average ~1% of home value annually
Estimated monthly heating costs
Canadian Mortgage Rules
Stress Test
All mortgages in Canada must pass a stress test at the higher of 5.25% or your contract rate plus 2%. This ensures you can afford payments if rates rise.
Debt Service Ratios
GDS (Gross Debt Service): Housing costs should not exceed 32% of gross income.
TDS (Total Debt Service): All debts should not exceed 40% of gross income.
CMHC Insurance
Down payments under 20% require mortgage default insurance (CMHC, Genworth, or Canada Guaranty), which is added to your mortgage amount.
Down Payment Requirements
| Purchase Price | Minimum Down |
|---|---|
| Up to $500,000 | 5% |
| $500,000 - $999,999 | 5% of first $500K + 10% of remainder |
| $1,000,000+ | 20% |
First-Time Buyer Benefits
First-time buyers may be eligible for:
- Ontario Land Transfer Tax rebate (up to $4,000)
- Toronto Land Transfer Tax rebate (up to $4,475)
- First Home Savings Account (FHSA)
- Home Buyers Plan (HBP) - RRSP withdrawal
Important Disclaimer
This calculator provides estimates based on standard Canadian mortgage guidelines and should not be considered as financial advice. Actual mortgage approval depends on many factors including credit score, employment history, property type, and individual lender policies. Interest rates and rules may change. Always consult with a licensed mortgage professional for personalized advice before making any home buying decisions.