Example$90,000 income · $100,000 down · $500/mo debt · 5.49% rate · 25-year amortization · Ontario
Maximum home price · · 2026
Monthly payment
$2,078
at 5.49% contract rate
Qualifying rate
7.49%
OSFI B-20 stress test
GDS ratio
36.2%
limit 39% · passes
Closing costs
$9,830
est. at purchase
GDS: housing costs ÷ gross income · TDS: housing + all debt ÷ gross income · Binding: TDS
| Land transfer tax | $6,580 |
| Legal fees | $2,000 |
| Appraisal | $400 |
| Home inspection | $500 |
| Title insurance | $350 |
| Total | $9,830 |
Estimates only. Uses OSFI B-20 stress test rules, 2026 CMHC tiers, and provincial LTT rates. Not financial advice - consult a qualified mortgage professional.
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The Canadian home-affordability calculator tells you the maximum purchase price you can actually qualify for - not the CMHC marketing number. It runs your income through the OSFI B-20 stress test, enforces the 39% GDS / 44% TDS ratios, and shows how much your city's land-transfer tax and closing costs reduce your usable down payment.
The tool back-solves the maximum mortgage that keeps you inside the 39% GDS limit (mortgage P&I + property tax + heat + half of condo fees) and 44% TDS limit (GDS + all other debt payments), all calculated at the stress-test rate. It then adds your down payment, subtracts land-transfer tax and CMHC premium, and returns the maximum home price. Default property tax, heat, and condo fee assumptions are province- and city-specific.
Since B-20 took effect in 2018, the stress test has reduced average Canadian purchasing power by roughly 15–20%. A 1% reduction in your other monthly debt payments can add $15,000–$25,000 to your maximum qualifying price.
Canada's OSFI B-20 rule requires lenders to qualify borrowers at the greater of the contract rate plus 2%, or the 5.25% benchmark floor. This effectively reduces your maximum purchase price by roughly 15–20% compared to qualifying at your actual rate.
Gross Debt Service (GDS) is the percentage of gross income going toward housing costs (mortgage P&I, property tax, heat, half of condo fees). Total Debt Service (TDS) adds all other debt payments. Most lenders cap GDS at 39% and TDS at 44%.
CMHC insurance (mortgage default insurance) is mandatory in Canada when your down payment is less than 20% of the purchase price. Premiums range from 2.8% to 4.0% of the mortgage amount and are added to your mortgage balance.
Long-form explainers that pair with this calculator.