How much can I afford

Five quick questions, and the price lenders would likely approve.

Turn the estimate into a plan.

We check it against your credit, income type and target areas, then line up pre-approval.

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How lenders decide what you can afford

Two ratios against your gross income, tested at a higher rate than you'll pay.

Worked exampleA household earning $120,000 a year, with $80,000 saved and $400 a month in other debts.

$10,000a month of income, before tax
which gives $3,900the most lenders let housing cost a month (39%)
which gives 6.12%the stress-test rate that payment is checked at (4.12% + 2%)
equals $593,000the highest price, with $80,000 down

At the real rate, 4.12%, the payment would be about $2,817 a month. Property tax $4,500 a year and heat $100 a month are counted as housing costs. An example, not a pre-approval.

Worked exampleHow the stress-test rate is set

4.12%Example rate (Bank of Canada average, August 2026)
plus 2%Stress-test buffer
equals 6.12%Qualifying rate (never below 5.25%)

You qualify at the higher rate, even though you'd pay the lower one.

The most lenders allow, as a share of gross income

GDS: mortgage, property tax, heat, half of condo fees39%
TDS: everything in GDS plus other debts44%

CMHC limits for insured mortgages. The lower result sets your maximum.

The full method and 6 official sources

Lenders don't ask what payment feels comfortable. They test two ratios against your gross income, at a stress-test rate.

The stress test

You have to qualify at the greater of your rate plus 2%, or 5.25%. At a 4.12% rate, you qualify at 6.12%, even though you'd pay 4.12%. Insured mortgages (under 20% down) use the same test.

GDS and TDS

GDS (gross debt service): mortgage payment + property tax + heat + half of any condo fees. For an insured mortgage, CMHC caps it at 39% of gross income.
TDS (total debt service): everything in GDS plus your other debt payments, capped at 44%.

Whichever limit you hit first sets your maximum mortgage. Then your down payment sets the price, under the minimum down payment rules.

What this estimate leaves out

Your credit score, how long you've had your job, self-employed or newcomer income, and each lender's own policy all change the answer. A pre-approval is the real test, and even it doesn't guarantee final approval.

Next: check the cash you need to close and the payment at a specific price.