Mortgage Affordability and Stress Test Calculator (Canada)
Find the highest price your income and down payment support under the federal stress test and CMHC's debt service limits.
Most you can afford
$573,058
$508,343 mortgage · $2,813.54 a month at 4.5%
- Your down payment$80,00014%
- Mortgage$493,05886%
- GDS
- 39% of 39% max
- TDS
- 43% of 44% max
Stress tested at 6.5%: $3,405.00 a month.
How this is calculated
Monthly gross income
Annual income before tax ÷ 12.
$10,000.00
Stress test rate
Lenders qualify you at the greater of your rate plus 2% or 5.25%: 6.5%.
Debt service limits
Housing costs (mortgage at the stress test rate, property tax, heat and half of condo fees) can be up to 39% of income (GDS), and all debts up to 44% (TDS).
Largest price that passes
Found by testing prices until the ratios hit the limit.
$573,058.00
Mortgage
Includes $15,284.80 of mortgage loan insurance.
$508,342.80
Monthly payment at your rate
What you would actually pay each month.
$2,813.54
Assumptions
- Uses CMHC's debt service limits, which most lenders also apply to uninsured mortgages.
- Lenders also look at credit score, savings and employment history, which this doesn't check.
Worked examples
6% rate, 25-year amortization, stress tested at 8%; property tax and other debts as listed in each scenario.
| Scenario | Max price | Mortgage | Payment |
|---|---|---|---|
| $80,000 income, $40,000 down | $319,588 | $288,255 | $1,844.28 |
| $120,000 income, $80,000 down | $510,802 | $442,864 | $2,833.48 |
| $180,000 income, $150,000 down | $812,772 | $681,330 | $4,359.19 |
Frequently asked questions
What is the mortgage stress test?
Lenders check that you could afford payments at the greater of your contract rate plus 2% or 5.25%. At a 6% rate you qualify at 8%. With $120,000 of income and $80,000 down, that supports a home of about $510,802.
What are GDS and TDS?
Gross debt service is housing costs (mortgage at the stress test rate, property tax, heat and half of condo fees) as a share of gross income; the limit is 39%. Total debt service adds car loans, student loans and card payments; the limit is 44%.
Can my down payment limit how much I can buy?
Yes. You need 5% of the first $500,000 and 10% above that, and insured mortgages aren't available at $1.5 million or more. With $25,000 down the most you can buy is $500,000, whatever your income.
Sources
- CMHC Mortgage Loan Insurance cost: premium on total loan by loan-to-value
- Financial Consumer Agency of Canada: minimum down payment by purchase price
- OSFI minimum qualifying rate: greater of the contract rate plus 2% or 5.25%
- Interest Act, section 6: mortgage rates must be stated calculated yearly or half-yearly, not in advance
- FCAC sample fixed-rate mortgage disclosure: interest compounded twice per year, charged monthly
- CMHC, Calculating GDS / TDS: 39% GDS and 44% TDS, 50% of condo fees included, qualifying rate
Estimates for information only; not tax, legal or financial advice. See our methodology.