Mortgage Affordability Calculator

It looks for the highest price at which your GDS and TDS ratios stay below the 39% and 44% limits, calculated at the qualifying rate. It takes into account your gross annual income, your other debts, your down payment (and the minimum required for the price), municipal and school taxes, heating, condo fees and, where applicable, the mortgage insurance premium added to the loan. The result is an estimate for information purposes only.

It is the share of your gross income spent on housing costs: mortgage principal and interest, property taxes, heating, and 50% of condo fees. For an insured mortgage, CMHC caps it at 39% of gross income.

It is the GDS ratio plus your other debt payments: car loan, personal loans, credit cards and lines of credit. For an insured mortgage, CMHC caps it at 44% of gross income. For credit cards and unsecured lines of credit, lenders count a monthly payment of at least 3% of the balance.

The estimated monthly payment is calculated with the interest rate you enter. The ratios, however, are calculated at the stress-test qualifying rate: the greater of your rate plus 2 percentage points or 5.25%, as required by federal rules for insured mortgages and by OSFI for uninsured mortgages from federally regulated institutions. This rate is what limits how much you can borrow.

Your down payment must meet the minimum for the target price: 5% up to $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% from $1,500,000. With less than 20% down, a mortgage insurance premium is added to the loan and increases the payment. For an insured mortgage, a 30-year amortization is reserved for first-time buyers and new builds.

The calculator uses the gross income you enter. Lenders may also consider other income, for example part of the rent from the property purchased (according to CMHC, up to 50% of gross rents, or up to 100% of the rent from the secondary unit of an owner-occupied duplex), or documented self-employment income. Your credit history also matters: for a CMHC-insured mortgage, at least one borrower must have a credit score of 600 or more.

No. It is an estimate based on general rules and on the data entered, not a pre-approval. Each lender applies its own criteria and checks your income, debts, credit and the property; a financial advisor or mortgage broker can build a complete picture.