Home Affordability Calculator
Rates verified Nov 2026 · Sources: CRA, Service Canada
Example$90,000 income · $100,000 down · $500/mo debt · 5.49% rate · 25-year amortization · Ontario
Maximum home price · · 2026
Monthly payment
$2,190
at 5.49% contract rate
Qualifying rate
7.49%
OSFI B-20 stress test
GDS ratio
38.0%
limit 39% · passes
Closing costs
$8,863
est. at purchase
GDS: housing costs ÷ gross income · TDS: housing + all debt ÷ gross income · Binding: TDS
- Mortgage at 7.49% (stress test)$2,635 · 83%
- Property tax (est.)$381 · 12%
- Heating$150 · 5%
| Land transfer tax | $5,613 |
| Legal fees | $2,000 |
| Appraisal | $400 |
| Home inspection | $500 |
| Title insurance | $350 |
| Total | $8,863 |
What's Next?
Estimates only. Uses OSFI B-20 stress test rules, 2026 CMHC tiers, and provincial LTT rates. Not financial advice - consult a qualified mortgage professional.
Keep your numbers moving
Jump into related tools with your next best calculation.
About this calculator
Updated April 2026The 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.
What you can do with it
- See your maximum stress-tested purchase price before you tour any home.
- Compare GDS/TDS headroom across different down payment scenarios.
- Understand how a $10,000 raise (or paying off a car loan) changes your max price.
- Check if you qualify in Toronto or Vancouver vs a smaller market.
How the math works
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.
Canadian context - 2026
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.
Official sources
- Bank of Canada: policy rate decision (checked 2026-11-09)
- Ontario: land transfer tax rates (checked 2026-10-10)
- Ontario: first-time buyer LTT refund (checked 2026-10-10)
Frequently asked questions
What is the mortgage stress test in Canada?
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.
What are GDS and TDS ratios?
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%.
When is CMHC mortgage insurance required?
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.
Go deeper - related guides
Long-form explainers that pair with this calculator.