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5 min readAffordability
Canadian mortgage affordability calculator
Find out how much home you can afford using Canada’s GDS and TDS debt-service rules — based on your income, debts, down payment and rate.
Your affordability estimate
Enter your numbers — the estimate updates instantly.
Income & debts
Car loans, student loans, credit-card minimums and other recurring debts.
Your purchase
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Maximum home price under GDS/TDS rules.
Maximum home price
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Maximum mortgage
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Maximum monthly payment
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GDS ratio at max price
TDS ratio at max price
Minimum down payment required
Your down payment
Planning estimate only. Lenders also apply the mortgage stress test and review credit, employment and the property itself. Down payments under 20% require mortgage insurance (2.8%–4.0% of the loan).
Know your budget? Compare current Ontario mortgage rates to lock in the best deal on your price range.
See what rates you actually qualify for at your price point — before you start making offers.
Compare Today’s Best RatesHow it works
- We apply Canada’s two debt-service rules: GDS caps housing costs (mortgage payment, property tax, heating) at 32% of gross monthly income, and TDS caps all debt payments at 40%.
- The lower of the two limits sets your maximum monthly mortgage payment, after subtracting property tax, heating and your other debts.
- That payment is converted into a mortgage amount using Canadian semi-annual compounding over your amortization, then your down payment is added to reach the maximum home price.
Canadian qualifying rules at a glance
| Rule | What it caps | Limit |
|---|---|---|
| GDS (Gross Debt Service) | Mortgage payment + property tax + heating | 32% of gross income |
| TDS (Total Debt Service) | Housing costs + all other debts | 40% of gross income |
| Minimum down payment | 5% to $500k, 10% to $1M, 20% above | By price tier |
Frequently asked questions
What are GDS and TDS ratios?
Gross Debt Service (GDS) caps your housing costs — mortgage payment, property tax and heating — at 32% of gross household income. Total Debt Service (TDS) caps all of your debt payments, including housing, at 40%. Lenders qualify you on the lower of the two limits.
Does this calculator use the mortgage stress test?
No. Federally regulated lenders also qualify you at the higher of your contract rate plus two percentage points, or the Bank of Canada’s qualifying rate. The stress test usually lowers the amount you can borrow versus the GDS/TDS math alone.
What down payment do I need in Canada?
The minimum is 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $999,999, and 20% on homes priced at $1 million or more. The calculator shows the minimum required for your maximum price.
Is CMHC mortgage insurance included in the price?
No. If your down payment is under 20% of the price, budget 2.8%–4.0% of the mortgage amount for the insurance premium, which is typically added to your loan rather than paid in cash.
Is this the same as a mortgage pre-approval?
No. This is a planning estimate based on standard GDS/TDS guidelines. A lender’s pre-approval also weighs your credit history, employment stability, the stress test, and the specific property.
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