Mortgage Affordability Calculator Canada 2026
Find out how much house you can afford in Canada. Uses the OSFI stress test, GDS/TDS ratios, and 2026 CMHC rules to calculate your maximum purchase price and monthly payment.
Your Financial Details
📋 How to use this calculator
- Enter your gross annual household income.
- Enter your down payment amount.
- Set your expected mortgage rate and amortization.
- Add any existing monthly debt payments (car loan, student loan, etc.).
- Click Calculate Affordability to see your maximum home price.
Quick presets:
Your Results
Enter your income and down payment, then click Calculate Affordability.
Maximum Home Price
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Debt Ratio Analysis
Monthly PITH
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P+I + Tax + Heat
Down Payment %
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Of maximum price
CMHC Required
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Mortgage insurance
Annual Income Needed
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At this purchase price
LTT estimate uses Ontario rates. Use the Land Transfer Tax Calculator for your province.
How Canadian Mortgage Affordability Works
🧮 The Stress Test
Canada's OSFI mortgage stress test requires you to qualify at the higher of your contract rate plus 2%, or 5.25% — whichever is greater. If your bank offers you a 5-year fixed rate of 4.5%, you must prove you could afford payments at 6.5%. This test applies to all federally regulated lenders (major banks, federal credit unions) and has applied since 2018 for insured mortgages and 2021 for uninsured. The stress test significantly reduces maximum purchase prices — a household qualifying for a $600,000 home at 4.5% would only qualify for roughly $480,000–$500,000 at the 6.5% qualifying rate.
📊 GDS and TDS Ratios Explained
Lenders use two debt ratios to determine how much you can borrow:
GDS — Gross Debt Service Ratio ≤ 39%
(Principal + Interest + Property Tax + Heating + 50% Condo Fee) ÷ Gross Monthly Income
TDS — Total Debt Service Ratio ≤ 44%
(GDS components + All Other Debt Payments) ÷ Gross Monthly Income
Both ratios are calculated using the stress test rate, not your contract rate. The binding constraint is whichever ratio hits its limit first — for most borrowers with no other debts, GDS is the binding constraint at 39%.
🏦 2026 CMHC Mortgage Insurance Rules
| Down Payment | CMHC Premium | On $500,000 | Max Amortization |
|---|---|---|---|
| 5% – 9.99% | 4.00% | $19,000 | 25 yrs |
| 10% – 14.99% | 3.10% | $13,950 | 25 yrs |
| 15% – 19.99% | 2.80% | $11,900 | 25 yrs |
| 20%+ | None | $0 | 30 yrs |
CMHC insurance is required for all mortgages with less than 20% down. Max insured purchase price is $999,999. Homes $1M+ require minimum 20% down. Premium is added to your mortgage balance.
❓ Frequently Asked Questions
What income do I need to afford a $700,000 home?
With a 10% down payment ($70,000) at a 4.5% rate, you need approximately $130,000–$140,000 in gross annual household income to qualify for a $700,000 home under the 39% GDS ratio at the 6.5% stress test rate. Reducing other debts or increasing your down payment lowers the income requirement significantly.
Does the stress test apply to mortgage renewals?
If you renew with your existing lender, the stress test generally does not apply. If you switch lenders at renewal, the stress test does apply. This means some Canadians who pass the stress test at purchase may not qualify to switch lenders at renewal if rates or incomes have changed — effectively locking them in with their current lender.
Can I get a 30-year amortization with less than 20% down?
As of August 2024, first-time buyers purchasing a newly built home can access a 30-year insured amortization. This reduces monthly payments by approximately 10–12% compared to a 25-year amortization but significantly increases total interest paid over the life of the mortgage.
Does this calculator account for the First Home Buyer's Incentive?
The First Home Buyer's Incentive (FHBI) was cancelled by the federal government in March 2024. This calculator does not include it. The FHSA (First Home Savings Account) is not a direct subsidy and functions as a tax-deductible savings account — its contribution is reflected in your down payment amount.