Free Canadian Mortgage Affordability Calculator

Find your maximum home price, monthly payment, and GDS/TDS ratios using real Canadian mortgage rules and the 2025 stress test.

Your Financial Details

Property tax is estimated based on provincial averages. Your actual rate may vary.
5.50%
25 yrs

Your Mortgage Affordability Breakdown

Max Home Price
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Mortgage Amount
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Monthly Payment
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Stress Test Max
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Total Interest Paid
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Down Payment %
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0% GDS Ratio
GDS Affordability
GDS Ratio (target ≤ 39%) —
TDS Ratio (target ≤ 44%) —
CMHC Insurance Premium
—

📚 Sources & References

Frequently Asked Questions

The Gross Debt Service (GDS) ratio is (mortgage payment + property taxes + heat) ÷ gross monthly income. Lenders target GDS ≤ 39% for insured mortgages. Below 32% is considered comfortable.
5% for homes up to $500K. 5% on first $500K + 10% on remainder for $500K–$999,999. Minimum 20% for homes $1M+. Under 20% down requires CMHC default insurance.
You must qualify at the higher of your contract rate + 2% or 5.25%. At a 5.5% rate, you'd be tested at 7.5%. The stress test max shown above reflects what federally regulated lenders will approve.
With $80,000 income and a 5% down payment at 5.5% over 25 years, you may qualify for roughly $370,000–$400,000. In Metro Vancouver that's challenging, but in Kamloops, Prince George, or the Okanagan it opens more options.
Required when down payment is 5%–19.99%. Premiums are 2.8% (15–19.99% down), 3.1% (10–14.99%), or 4.0% (5–9.99%) of the mortgage amount. Added to your mortgage — not paid upfront.

🏠 Mortgage Quick Tips

  • ✅ GDS target: Keep below 32%
  • ✅ TDS target: Keep below 44%
  • ✅ 20%+ down: No CMHC insurance
  • ✅ Semi-annual compounding (unique to Canada)
  • ✅ Stress test = contract rate + 2%
  • ✅ Rates lock in 90–120 days typically

How the Mortgage Affordability Calculator Works

This calculator uses real Canadian mortgage rules — including semi-annual compounding, the OSFI stress test, and GDS/TDS ratios — to estimate your maximum affordable home price and monthly payment.

Canadian Mortgage Compounding

Unlike the US, Canadian mortgages compound semi-annually (twice per year). This means the effective monthly rate is slightly lower than dividing the annual rate by 12. The formula used is:

Effective monthly rate = (1 + annual rate / 2)^(1/6) − 1

The 2025 OSFI Stress Test

All federally regulated lenders must qualify you at the greater of: your contract rate + 2%, or 5.25%. So if your negotiated rate is 4.5%, you're tested at 6.5%. This ensures you can still afford your mortgage if rates rise.

GDS and TDS Ratios

GDS (Gross Debt Service) = (mortgage payment + property tax + heat) ÷ gross monthly income. Canadian lenders target GDS ≤ 39%. TDS (Total Debt Service) adds all other debts and should stay ≤ 44%.

Example Calculation

Inputs: $95,000 income, $50,000 down payment, 5.5% rate, 25-year amortization, BC.

Result: Max home price ~$486,000. Monthly payment ~$2,482. GDS ~39%. Stress test qualifies you at 7.5% (5.5% + 2%). CMHC insurance applies since down payment is under 20% of purchase price.

CMHC Mortgage Insurance

If your down payment is less than 20%, you need CMHC (or Sagen/Canada Guaranty) mortgage default insurance. Rates: 4.00% for 5–9.99% down, 3.10% for 10–14.99%, 2.80% for 15–19.99%. The premium is added to your mortgage balance.