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Mortgage affordability calculator

This calculator applies the federal stress test and common debt-service guidelines to estimate the maximum purchase price you may qualify for.

By Promissory.ca Editorial Team Reviewed against official Canadian sources Last updated:

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Estimated maximum purchase price

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How this calculator works

  1. Add 2 percentage points to the contract rate and compare it with 5.25% to find the qualifying rate.
  2. Calculate the housing cost your income supports under the gross debt service guideline.
  3. Subtract your other debt payments to find the housing cost supported under the total debt service guideline.
  4. Take the lower of the two and convert it to a mortgage amount at the qualifying rate.
  5. Add your down payment to estimate the maximum purchase price.

Formula: Qualifying rate = max(contract rate + 2%, 5.25%); GDS ≤ 32%, TDS ≤ 40% (lender guidelines)

Frequently asked questions

What is the mortgage stress test?

Federally regulated lenders must qualify you at the greater of your contract rate plus 2% or 5.25%, under OSFI Guideline B-20. This ensures you could still pay if rates rise.

What are GDS and TDS?

Gross debt service is the share of your income that goes to housing costs. Total debt service includes housing plus all other debt payments. Lenders commonly use 32% and 40% as guidelines, but each lender sets its own limits.

Is this the amount I will be approved for?

No. It is an estimate. Your lender will assess your full financial picture, including credit history, employment and the property itself.

Sources

Important legal information

Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.

Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.

Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.

Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.

There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.

Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.

We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.

If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.

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Affiliate disclosure: Promissory.ca is a free comparison and referral service. We may receive compensation from lending partners when you click a partner link or submit an application. This compensation does not affect the information or comparisons we publish.