Canadian Mortgage Affordability Calculator

Ask a mortgage question or adjust the numbers below. Your payment estimate, GDS/TDS ratios, lender-fit snapshot, and approval signal update instantly.

Approval Snapshot

Updated from your AI question

Showing sample first-time buyer values. Ask the AI Advisor with your buyer type, income, home price, down payment, and monthly debts to update this snapshot.

Current assumptions

Buyer type:First-time
Income:$120,000
Property:$700,000
Down payment:$70,000
Monthly debts:$0
Rate:4.5%
Amortization:25 yrs

91%

High Chances

Approval estimate

Snapshot results

Monthly payment$3,502
LTV90.0%
GDS35.0%
TDS35.0%

First-time buyer note: this sample uses 10% down. First-time buyers often need 5-10% minimum depending on price.

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first-time buyer, income 120k, home 700k, down 70k, debts 0
Based on your information, you can likely afford this home with a 10% down payment. Your estimated monthly mortgage payment would be $3,502, and your chances of approval are high at 91%. This means you're well within the recommended debt service ratios for this price point.

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Hi, I’m your Canadian mortgage assistant. Ask me anything about affordability, down payment, rates, CMHC insurance, or fixed vs variable mortgages.

AI can make mistakes. Please use these answers as a helpful starting point and confirm important details with your lender, broker, or a qualified professional.

Tip: try typing "first-time buyer, income 120k, home 700k, down 70k, debts 0" or "repeat buyer, income 160k, home 800k, down 160k, debts 500".

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Canadian mortgage affordability guide

How much mortgage can you afford in Canada?

The best affordability answer is not just the biggest mortgage a calculator can produce. A stronger answer combines monthly payment comfort, GDS and TDS ratios, down payment size, mortgage insurance, rate risk, and whether your file still works after normal life costs. Use the calculator above as a first pass, then compare the result against the guide below before speaking with a lender or broker.

Best first check

Monthly payment

If the payment already feels tight, a higher approval estimate will not make the mortgage easier to live with.

Key lender ratios

GDS and TDS

GDS focuses on housing costs. TDS adds other debts. These ratios are often where affordability breaks.

Biggest lever

Down payment

More down payment can lower the mortgage, insurance cost, monthly payment, and loan-to-value risk.

Affordability factorWhy it mattersWhat to test
IncomeGross income drives the first ceiling lenders consider.Try base salary only, then add reliable bonus or variable income separately.
Other debtsCar loans, credit lines, and card payments raise TDS.Test your payment again after reducing or removing one debt.
Interest rateHigher rates increase payments and can reduce approval room.Stress-test at least 0.50% to 1.00% higher than your target rate.
Property taxes and heatingHousing costs are part of GDS.Use realistic local estimates instead of leaving them at zero.
Condo feesMany lenders count part of condo fees in housing costs.Add condo fees when comparing houses versus condos.
Down paymentDown payment changes LTV, insurance, and payment size.Compare 5%, 10%, 15%, and 20% down if you have flexibility.

A practical Canadian affordability method

  1. Start with the home price and down payment you are actually considering.
  2. Add property taxes, heating, condo fees, and monthly debts so GDS/TDS are not understated.
  3. Check whether the payment fits your monthly cash flow after savings, insurance, food, childcare, transit, and repairs.
  4. Compare fixed and variable scenarios instead of relying on one rate.
  5. Run a higher-rate stress test before treating the result as comfortable.
  6. Use lender-fit cards as a shortlist, then confirm details with the lender, broker, or bank.

Mortgage affordability FAQs

How much mortgage can I afford in Canada?

A practical starting point is the payment your income can support while keeping GDS and TDS ratios inside lender guidelines. The exact mortgage amount depends on your income, debts, down payment, property taxes, heating costs, condo fees, interest rate, amortization, credit profile, and the lender's stress-test rules.

What GDS and TDS ratios do Canadian lenders use?

Many insured-mortgage scenarios use rough upper guidelines near 39% for GDS and 44% for TDS, though lenders can apply their own policies. Lower ratios usually leave more room for approval, rate increases, and normal household expenses.

Does a bigger down payment improve affordability?

Yes. A larger down payment lowers the mortgage amount, monthly payment, loan-to-value ratio, and sometimes mortgage-insurance costs. It can also make a file look stronger when income or debt ratios are close to lender limits.

Should I use a fixed or variable rate for affordability planning?

Use the rate type you are seriously considering, then stress-test a higher payment. Fixed rates help with payment certainty, while variable rates can move with prime. A conservative calculator test should show whether the mortgage still works if rates rise.