Home & Mortgage Affordability Calculator Canada 2026
Estimate how much home you can afford from household income, down payment, debt and ownership costs—then compare the result with Canada's debt-service ratios and mortgage stress-test framework.
Home Affordability Calculator Canada: How Much House Can You Afford?
A lender does not look at salary alone. Mortgage qualification can depend on verified gross household income, mortgage payments, property taxes, heating costs, condo fees, other monthly debt and your qualifying interest rate. For personal planning, you should also consider closing costs, maintenance, utilities and an emergency fund.
Federal consumer guidance uses a 39% GDS guideline for monthly housing costs and a 44% TDS guideline after other debts are included. The mortgage stress test generally uses the higher of 5.25% or your contract rate +2 percentage points.
Estimate your home-buying range
Adjust income, down payment, rate and monthly obligations. Results update instantly.
Monthly affordability breakdown
How this home affordability calculator works
Enter your household income, down payment, monthly debt, mortgage rate and expected ownership costs. The calculator gives you a practical home affordability estimate so you can see the home price and mortgage range your budget may support before comparing it with lender qualification rules.
If you searched for a home affordability calculator or a mortgage affordability calculator, this tool is designed for the same core question: how much home can your income and current debts realistically support in Canada?
Canada mortgage affordability: GDS and TDS
Gross Debt Service (GDS) compares housing costs with gross household income. Housing costs generally include the mortgage payment, property taxes, heating and 50% of condo fees where applicable. Federal guidance says these monthly housing costs generally should not exceed 39% of gross household income.
Total Debt Service (TDS) adds other debt obligations such as car loans, credit cards, lines of credit and student loans. Federal guidance uses 44% of gross household income as the general TDS threshold.
These ratios are qualification guidelines rather than a promise that a particular lender will approve a specific mortgage.
Mortgage stress test Canada 2026
Canada's stress test is designed to check whether a borrower could handle payments at a higher rate. The current minimum qualifying rate for uninsured mortgages at federally regulated lenders is the greater of the mortgage contract rate plus 2 percentage points or 5.25%. Federal consumer guidance describes the same qualifying-rate test for insured and uninsured mortgages.
Example: 4.5% contract rate
Contract rate + 2% = 6.5%, so 6.5% is above the 5.25% floor and becomes the qualifying rate.
Example: 3.0% contract rate
Contract rate + 2% = 5.0%, so the 5.25% floor is higher.
There are exceptions and lender-specific details. OSFI, for example, does not prescribe this MQR for certain uninsured straight switches at renewal when the loan amount and remaining amortization are not increased.
Minimum down payment in Canada
| Home price | Federal minimum down payment |
|---|---|
| $500,000 or less | 5% of purchase price |
| Over $500,000 and under $1.5M | 5% of first $500K + 10% of amount above $500K |
| $1.5M or more | 20% |
If your down payment is below 20%, you will typically need mortgage loan insurance, subject to eligibility and lender requirements. A larger down payment can reduce the mortgage required and may materially change monthly affordability.
What changes your affordable home price?
Income & debt
Higher qualifying income increases capacity, while car loans, credit cards and other debt consume TDS room.
Mortgage rate
A higher rate means the same mortgage balance requires a larger payment and can reduce your qualifying amount.
Property costs
Property tax, heating and condo fees can reduce the amount available for the mortgage itself.
Down payment
More cash down reduces the mortgage balance and can change mortgage-insurance requirements.
Continue your home affordability plan
Once you have a target home price, calculate the cash required to buy and test the payment against the rest of your monthly budget.
Down Payment Calculator → Closing Cost Calculator → Salary Needed Calculator → Take-Home Pay → Budget Dashboard →
Mortgage affordability FAQ
How much mortgage can I afford in Canada?
Your mortgage affordability depends on verified household income, housing costs, existing debts, down payment, mortgage rate and lender underwriting. Canadian guidance commonly uses GDS and TDS debt-service ratios, while federally regulated lenders also apply a mortgage stress test.
What are GDS and TDS ratios?
GDS measures monthly housing costs relative to gross household income. Federal consumer guidance says housing costs generally should not exceed 39% of gross household income. TDS adds other debt payments and generally should not exceed 44%.
What is the Canadian mortgage stress test in 2026?
For federally regulated lenders, borrowers generally qualify at the higher of 5.25% or the mortgage contract rate plus 2 percentage points. Rules and exceptions can differ, including certain uninsured straight switches at renewal.
What is the minimum down payment in Canada?
For homes priced at $500,000 or less, the federal minimum is 5%. From $500,000 to under $1.5 million, it is 5% of the first $500,000 plus 10% of the portion above $500,000. At $1.5 million or more, the minimum is 20%.
Do I need mortgage insurance with less than 20% down?
Typically yes. Federal guidance says buyers putting less than 20% down will generally need mortgage loan insurance, subject to eligibility and lender requirements.
Does this calculator provide a mortgage pre-approval?
No. AffordBase provides an educational planning estimate. A lender may calculate income, debt, property costs, insurance and qualification differently.
Important
AffordBase provides educational estimates, not financial advice, a mortgage quote or a pre-approval. Actual qualification depends on lender underwriting, verified income, credit, debts, property details, mortgage insurance and current rules. Confirm the current requirements with your lender or mortgage professional before making a purchase decision.