How much house can you afford?
Banks don't qualify you at your actual rate. They use a "stress test" rate, the greater of your contract rate plus 2% or 5.25%, and check that housing costs stay under 39% of gross income (GDS) and all debts under 44% (TDS).
Assumptions
- Qualifying rate = greater of contract rate + 2% or 5.25% (federally regulated lenders).
- GDS max 39%, TDS max 44% of gross income (FCAC guideline).
- Canadian fixed-rate mortgages compound semi-annually; payments monthly.
- Ignores mortgage default insurance premiums, condo fees, minimum down payment rules and lender-specific policies.
General information, not financial advice. This calculator gives rough estimates from simplified assumptions. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.
Sources
Figures checked October 16, 2026. Rules and limits change; confirm with the source before acting.