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Income, down payment, stress test, GDS/TDS, and CMHC — educational estimates only.
Canada Stress test Free
Canadian affordability using GDS/TDS and the mortgage stress test (contract + 2% vs 5.25% floor).
Maximum home price
$359,000
Rounded down to the nearest $1,000.
Maximum mortgage
$318,579
Includes CMHC premium when down < 20%.
Required down payment %
13.93%
Your down payment vs max home price.
Monthly mortgage payment
$1,878.34
At your contract rate on the total financed amount (25-year amortization).
Results are estimates based on standard lender guidelines. Actual approval depends on credit score, lender policies, and other factors.
Canadian lenders do not look only at your wish list or the list price of a home. They start with your gross income and apply two debt-service ceilings that act like guardrails. The Gross Debt Service (GDS) ratio caps your core housing costs—mortgage principal and interest, an allowance for property taxes, and heating—at 39% of gross monthly income. The Total Debt Service (TDS) ratio adds your other monthly obligations, such as car loans and minimum credit card payments, and limits the combined total to 44% of gross income. In practice, the tighter of the two limits determines how large a mortgage payment you can carry before taxes and insurance beyond the basics are even considered.
On top of those ratios, federal guidelines require the mortgage stress test. You must show you can afford payments calculated at the higher of your actual contract rate plus two percentage points, or a 5.25% floor rate—whichever is higher. That qualifying rate is used to size the loan, not your promotional contract rate, which is why two borrowers with the same income can qualify for different amounts when their offered rates differ. The stress test is meant to cushion you against future rate increases over a multi-year amortization.
If your down payment is less than 20% of the purchase price on an eligible property, lenders will require mortgage default insurance (often referred to as CMHC insurance, though other insurers exist). The premium is based on your loan-to-value tier and is typically added to the mortgage balance rather than paid in cash at closing. That increases the amount you borrow and therefore the payment used in both stress-test and budget math, which is why small changes in down payment can move your maximum price more than you might expect.
Before you apply, include every stable income source the lender will count—salary, predictable bonuses where allowed, and verifiable co-borrower income—and be honest about monthly debts. Paying down revolving balances or finishing an installment loan can improve your TDS headroom. This calculator is an educational estimate: actual approvals depend on credit history, employment documentation, property type, and each lender's underwriting policies.
Results are illustrative only and do not constitute a mortgage commitment. Rules, thresholds, and insurance premiums change; confirm details with a licensed mortgage professional before you make an offer on a home.
Use the GDS ratio (39% of gross income) and TDS ratio (44%) as the two main limits. The lower result sets your maximum mortgage payment. Then apply the stress test rate (your rate + 2% or 5.25%, whichever is higher) to find the maximum mortgage principal.
The stress test requires you to qualify at the higher of your contract rate plus 2%, or 5.25%. This ensures you can still afford payments if rates rise.
5% for homes up to $500,000; 5% on the first $500,000 and 10% on the remainder up to $999,999; 20% for homes $1,000,000 and over.
CMHC insurance is required when your down payment is less than 20%. The premium ranges from 0.60% to 4.00% of the mortgage amount and is added to your mortgage.
The Gross Debt Service ratio measures your monthly housing costs (mortgage, property tax, heating) as a percentage of gross monthly income. Canadian lenders require GDS of 39% or less.