How much house can you afford?
Find your real number — the one a lender would actually approve. This calculator applies the same GDS and TDS ratios banks use, and runs the federal mortgage stress test on top.
Car loans, credit cards, student loans.
With less than 20% down you'll also pay CMHC mortgage default insurance, which is added to your mortgage balance.
Mortgage + property tax + heat, as a share of gross income
Everything above, plus car loans, credit cards and student loans
Estimate only. Real approvals also depend on your credit score, employment history, and each lender's own rules — and a pre-approval is the only way to know for certain.
Lenders cap housing costs at ~39% of gross income (GDS) and total debt at ~44% (TDS), then stress-test you at the greater of your rate + 2% or 5.25%. Your maximum price is the mortgage that fits those limits, plus your down payment.
Minimum down payment in Canada
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% of the price |
| $500,000 – $999,999 | 5% of the first $500k + 10% of the rest |
| $1,000,000 or more | 20% of the price |
Frequently asked questions
How much house can I afford in Canada?
Lenders cap your housing costs at about 39% of gross income (the GDS ratio) and your total debt payments at about 44% (the TDS ratio). They also apply the mortgage stress test, qualifying you at the greater of your contract rate plus 2% or 5.25%. Your maximum price is whichever of those limits you hit first, plus your down payment.
What is the mortgage stress test?
Under federal B-20 guidelines, lenders must confirm you could still afford your payments at a higher rate than you're actually offered — the greater of your contract rate plus 2 percentage points, or 5.25%. It reduces how much you can borrow, but protects you if rates rise at renewal.
What are the GDS and TDS ratios?
Gross Debt Service (GDS) is your mortgage payment plus property tax and heating, divided by gross income — the limit is roughly 39%. Total Debt Service (TDS) adds all your other debt payments such as car loans, credit cards and student loans, with a limit of roughly 44%.
What's the minimum down payment in Canada?
5% on the first $500,000, 10% on the portion between $500,000 and $1,000,000, and 20% on homes of $1,000,000 or more. Below 20% down you must also buy CMHC mortgage default insurance, which is added to your mortgage balance.
Related tools
Researching and writing about Canadian mortgages and home buying since 2026.
“How Much House Can I Afford? (Canada) — VaultNerd” — VaultNerd, https://www.vaultnerd.com/tools/mortgage-affordability-calculator, updated August 2026.
- CMHC — Gross Debt Service and Total Debt Service ratio guidelines
- OSFI Guideline B-20 — residential mortgage underwriting and the stress test
- Government of Canada — minimum down payment rules