How much home can you afford?
Enter your household income, monthly debts, down payment and property costs to estimate the highest price a lender is likely to approve. It uses CMHC's debt service limits (39% of income for housing, 44% for all debts) and qualifies you at the greater of your rate plus 2% or 5.25%, like the banks do.
Your household
Car loans, lines of credit, support payments, and 3% of any credit card balance.
The home's running costs
Every MLS® listing shows its annual taxes; use one from a home you like.
Gas, hydro, propane or oil. Ask us what a home like it usually costs.
Lenders count half of it.
A lender is likely to approve a home up to about
$483,000
Housing costs set the ceiling: they would reach 39% of your income (the GDS limit).
Add property tax and heating for a realistic answer: without them the figure is too high.
- Down payment
- $40,000
- Mortgage, with insurance premium
- $460,720
- Default insurance premium, included
- $17,720
- Your payment at 4.5%, per month
- $2,550
- Stress-test rate the lender uses
- 6.50%
- Payment at the stress-test rate
- $3,086
Good to know
- Housing costs in the test are your mortgage payment, property tax, heating and, for a condo, half the condo fee. Fill in your own figures: taxes and heating vary a lot between a town bungalow and a farmhouse.
- This is an estimate, not an approval. A lender also looks at your credit (CMHC's minimum score is 600), your job history and the property.
- The top of your range is not a target. Leave room for repairs, a car and life.
Sources, checked September 26, 2026
- CMHC: Purchase (homeowner mortgage loan insurance). Maximum GDS 39%, maximum TDS 44%, minimum credit score 600, qualify at the greater of the contract rate plus 2% or 5.25%, standard maximum amortization 25 years.
- OSFI: Minimum qualifying rate for uninsured mortgages. The greater of the mortgage contract rate plus 2% or 5.25%.
- Financial Consumer Agency of Canada: Preparing to get a mortgage. Stress test applies to insured and uninsured mortgages; GDS 39% and TDS 44% guidance.
- Canada Revenue Agency: Home Buyers' Plan. HBP withdrawal limit $60,000.
- Canada Revenue Agency: Contributing to your FHSA. $8,000 a year of participation room, $40,000 lifetime limit.
Questions we hear
What are GDS and TDS?
Gross debt service (GDS) is your housing costs as a share of gross income; the limit for an insured mortgage is 39%. Total debt service (TDS) adds your other debts, such as car loans and credit cards; the limit is 44%.
Why do I qualify at a higher rate than I will pay?
That is the mortgage stress test. Lenders must check you could still afford the payment at the greater of your contract rate plus 2% or 5.25%.
Can I use my RRSP or FHSA for the down payment?
Yes, if you qualify. The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP, and a First Home Savings Account takes up to $8,000 a year to a lifetime $40,000. Our first-time buyer guide explains both.
More tools
Numbers are the start. We will help with the rest.
Talk to us before you shop: we can point you to local lenders, explain what homes like the one you want cost to run, and set up alerts for the right price range.