Housing & Mortgage

Mortgage Affordability Calculator

Estimate how much home you may afford using income, debt, down payment, interest rate, and mortgage affordability ratios.

Before you calculate

Use this as a planning estimate, not a final answer.

Start with realistic Canadian numbers, then test a cautious case and an optimistic case. The result depends on the assumptions you enter, current rates, province-specific rules, and your personal situation.

Main assumptions

Inputs are editable and should be updated with your real income, rates, province, fees, or account limits. Calculations are simplified and may not include every tax credit, lender rule, fee, eligibility condition, or timing detail. Verify official numbers before acting. This tool is educational and is not financial, tax, legal, mortgage, or investment advice.

Home affordability calculator

How much home can you afford?

Move the sliders to test a home price using income, debt, down payment, the mortgage stress test, and the monthly costs of owning.

How much money comes in?

Your yearly income before tax$85,000$20,000$500,000Partner's yearly income$0$0$500,000

Down payment and debt

Down payment available$50,000$0$2,000,000Total monthly debt payments$1,200$0$10,000

Mortgage and owner costs

ProvinceFirst-time buyer credit where available

Mortgage interest rate5%2 %9 %Amortization25 years5 years30 yearsMonthly property tax$350$0$2,500Monthly heat, utilities, and services$220$0$1,500Monthly condo or strata fees$0$0$2,500Monthly insurance and maintenance$325$0$1,000

Your comfortable home price

$240,536

This estimate uses common Canadian lender-style debt service assumptions and the mortgage stress-test qualifying rate.

Stress-test assumptions

7.0%

Uses the greater of your rate plus 2% or 5.25%, with 39% gross debt service and 44% total debt service limits in the background.

Household income$85,000

Monthly mortgage payment$1,347

Monthly ownership cost$2,242

Minimum down payment$12,027

Estimated closing costs$4,050

What this means

Cash needed to closePlan for at least $16,077: $12,027 minimum down payment plus $4,050 estimated closing costs.

Down payment gapYour entered down payment clears the minimum down payment rule for this price.

Debt pressureGDS is 27.1% and TDS is 44.0% in this scenario.

Main limitTotal debt service is currently setting the ceiling for the mortgage payment.

Closing cash breakdown

Land transfer tax estimate$0

Legal and title buffer$2,200

Inspection and appraisal$950

Prepaid adjustments$900

How mortgage affordability works

Lenders compare your income against expected housing costs and other debt payments to estimate what payment you can carry.

Gross and total debt service ratios explained

Gross debt service focuses on housing costs. Total debt service includes housing plus other debt obligations.

Down payment rules in Canada

Down payment requirements and mortgage insurance depend on purchase price, property type, and program rules.

Frequently asked questions

Does this guarantee approval?+

No. Lenders also assess credit, employment, stress test rules, property type, and documentation.

Does it include heating?+

Yes, it uses a simple default monthly heating cost in the debt ratio estimate.

Disclaimer

Estimate only. This tool is for informational purposes and does not replace professional financial, tax, legal, mortgage, or immigration advice. Always verify official figures before making decisions.