Canada Mortgage Affordability Calculator
Lenders don't qualify you at the rate you'll actually pay — they stress-test you at a higher rate. Enter your income, debts and down payment to see the maximum mortgage and home price you qualify for under the 2026 rules.
How to use this calculator
- Enter gross household income per year.
- Enter down payment.
- Enter contract mortgage rate.
- Enter amortization.
- Enter monthly debt payments (car, credit cards, loans).
- Enter annual property tax.
- Enter monthly heating cost.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Canadian lenders apply the stress test: you must qualify at the greater of your contract rate plus 2% or 5.25% (OSFI, unchanged for 2026), then keep housing costs within 39% of gross income (GDS) and total debt payments within 44% (TDS) — the CMHC guideline. Property tax and heating count inside the housing ratio. The calculator finds the monthly payment both limits allow, converts it to a mortgage principal at the stress-test rate, and adds your down payment to get the maximum home price. Worked example: a $120,000 household income with $500 a month of debt, $100,000 down, a 4.5% contract rate and a 25-year amortization qualifies at 6.5%, supports a $3,450 monthly payment, and buys a home around $611,000.
Frequently asked questions
What is the stress test rate in 2026?
The greater of your contract rate plus 2% or 5.25% — set by OSFI for uninsured mortgages and the same guideline applies to insured ones. For example, at a 4.5% contract rate you must qualify at 6.5%. The stress test is no longer required when renewing with a different lender or transferring your mortgage (change made December 2024), but it still applies to new mortgages and purchases.
What are the GDS and TDS limits?
Gross Debt Service (GDS) — housing costs including mortgage, property tax and heating — must stay at or below 39% of gross income. Total Debt Service (TDS), which adds car loans, credit cards and other debts, must stay at or below 44%. That is the CMHC guideline most lenders use for insured mortgages; some lenders are slightly more flexible on uninsured ones.
Can I use a 30-year amortization?
Since December 15, 2024, first-time buyers and buyers of newly built homes can stretch an insured mortgage (under 20% down) to 30 years; everyone else is capped at 25 years. Longer amortization lowers the monthly payment, which raises the price you can afford — but you pay more total interest over the life of the loan.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect the current tax year and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: canada.ca tax rates · CPP rates · CMHC mortgage insurance.