Why is my maximum purchase price lower than expected?

Common reasons: debt service ratio limits, stress test qualifying at ~2% above your contract rate, property taxes and heating costs consuming ratio room, and existing debt payments eating into TDS. The calculator shows which factor is binding.

How does the stress test reduce my maximum mortgage?

Even if your contract rate is 4.50%, you qualify at 6.50% (contract + 2.00% > 5.25% floor). That higher hypothetical payment reduces purchasing power by $80K-$120K on a $140K income.

How does a larger down payment improve my numbers?

Three ways: reduces the mortgage amount, eliminates CMHC insurance at 20%+, and frees up ratio room because the payment is smaller. Going 10% to 20% on $600K saves ~$18.6K in premiums.

Is this the same as a mortgage pre-approval?

No. This estimates your maximum based on published rules. A pre-approval involves document verification — pay stubs, tax returns, credit check — and provides a conditional lender commitment. Use this for planning, then get a broker-reviewed pre-approval before making offers.

Does rental income from a suite count?

It can. For owner-occupied with a suite, lenders add 50-80% of projected rent to qualifying income. For investment properties, DSCR is the primary test. Ask your broker how your specific rental situation affects qualification.

Mortgage Affordability Calculator Canada

Max purchase priceInsured eligible

$790,467

$120,000 down · stress-tested at 7.25%

Max mortgage

$670,467

Cap: TDS

GDS

32.0%

TDS

37.6%

Contract payment

$3,995.43

Save scenario

Purchase plan

Down payment, rate, and amortization.

What do you want to solve for?

Down payment

Cash you plan to put down.

Contract rate (%)

Amortization (yrs)

Extra months

Payment period

Income & debts

Household income and recurring obligations.

Gross income (annual)

Other income (annual)

Rental, bonus, or part-time income lenders will count.

Other debts (monthly)

Car loans, credit cards, lines of credit, support payments.

Property taxes (annual)

Heat (monthly)

Condo fees (monthly)

Insurance (monthly)

You can afford up to $790,467, limited by your TDS ratio.

This price qualifies for default insurance (CMHC/Sagen/Canada Guaranty) if needed.

Max purchase price: $790,467; With $120,000 down (15.2%)
Max mortgage: $670,467; Capped by TDS at the stress-test rate
Contract payment: $3,995.43; Per payment period at your contract rate
Stress test rate: 7.25%; max(5.25%, contract + 2%) per OSFI B-20

32.0%cap 39

GDS ratio

Stress-tested: 38.4%

37.6%cap 44

TDS ratio

Stress-tested: 44.0%

Monthly shelter costs: $3,995.43; Payment + taxes + heat + fees + insurance
Minimum down payment: $54,047; Insured eligible

Interactive calculator

Affordability calculator

See the maximum purchase price supported by your income and down payment.

Canadian home-buying authority

One purchase plan. Seven definitive answers.

Start with the decision in front of you. Each page owns one part of the mortgage journey, then connects cleanly to the next question without making you repeat the same research.

Your current decision

What can I comfortably afford?

Payment comfort, qualification ratios, and a realistic price range.