How much house can you afford in Canada?
Canadian lenders decide how big a mortgage you can get with two debt ratios and a stress test. This calculator applies the same rules to find the highest home price your income, debts and down payment support. It's a planning estimate; your lender will confirm the exact amount in a pre-approval.
The mortgage stress test
To make sure you could still pay if rates rise, you must qualify at the minimum qualifying rate: the higher of your contract rate plus 2 percentage points or 5.25%. If your lender offers 4.25%, you must qualify as if the rate were 6.25%. Your actual payment is still based on the lower rate you sign for. The stress test applies to insured and uninsured mortgages at federally regulated lenders, although borrowers switching an uninsured mortgage to a new lender at renewal no longer have to re-qualify.
GDS and TDS limits
- Gross Debt Service (GDS): your housing costs — mortgage payment at the stress-test rate, property tax, heating and half of any condo fees — can be at most 39% of your gross monthly income.
- Total Debt Service (TDS): housing costs plus all other debt payments (car loans, credit cards, student loans, lines of credit) can be at most 44%.
These are the limits for insured mortgages; many lenders use similar limits for conventional mortgages. The calculator assumes $100 a month for heating, the figure lenders commonly use.
Minimum down payment and CMHC insurance
You need at least 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more need 20% down. With less than 20% down, the mortgage must be insured by CMHC, Sagen or Canada Guaranty, and the premium is added to your loan: 4.00% of the mortgage with 5% to 9.99% down, 3.10% with 10% to 14.99% and 2.80% with 15% to 19.99%, plus 0.20% for a 30-year amortization. Since December 15, 2024, first-time buyers and buyers of newly built homes can choose a 30-year amortization on an insured mortgage, which lowers payments and raises the amount you qualify for.
Other costs to budget for
Lenders also expect you to have closing costs of about 1.5% to 4% of the price on top of your down payment — land transfer tax, legal fees, title insurance and moving costs. Land transfer tax alone can exceed $20,000 in Toronto; estimate it with our land transfer tax calculator.
Worked examples
A couple with a combined income of $120,000, a $60,000 down payment, $500 a month in car payments and a 4.25% rate must qualify at 6.25%. With a 25-year amortization they can afford a home of about $566,000. With 10.6% down, a 3.10% CMHC premium ($15,686) is added, for a mortgage of $521,686 and an actual payment of about $2,815 a month. Their total debt ratio (TDS) is the limit. As first-time buyers choosing a 30-year amortization, they could stretch to about $599,000.
A single buyer earning $100,000 with no other debts and $50,000 down can afford about $470,000, with a monthly payment of about $2,337. Doubling the down payment to $100,000 raises the price to about $516,000 — not $50,000 more — because the larger down payment avoids most of the CMHC premium but the income limit stays the same.
Ready to compare payment options? Use the Canadian mortgage calculator to see bi-weekly and accelerated payments, and boost your down payment tax-free with an FHSA.
Frequently asked questions
How much house can I afford on $100,000 a year in Canada?
What is the mortgage stress test rate in 2026?
What are GDS and TDS?
What is the minimum down payment in Canada?
Sources & methodology
This calculator was last reviewed on November 2, 2026. Figures are based on the following official and primary sources:
- Financial Consumer Agency of Canada – Calculating how much you can afford
- OSFI – Minimum qualifying rate for uninsured mortgages
- CMHC – Mortgage loan insurance premiums
- CMHC Mortgage Loan Insurance premiums
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