Mortgage Affordability Calculator

Choose your country, then enter your income, debts, other housing costs, down payment and the interest rate to see the home price a typical lender would allow, using that country's usual rules, including the Canadian stress test.

Which country are you in?

Choose your country first: it sets the currency and the rules used. We guessed Canada from your browser.

Gross household income (yearly, before tax)

CAD

Other debt payments (monthly)

CAD

Car loans, credit cards, student loans and similar.

Property tax, heating, condo and insurance (monthly)

CAD

Costs of owning the home besides the mortgage.

Down payment you have saved

CAD

Mortgage interest rate (yearly)

Use the rate you expect to get. The one shown is only a starting example.

Amortization

Lender rules used (you can change them)

Canadian lenders commonly limit housing costs to 39% of gross income (GDS) and all debts to 44% (TDS), and test the payment at your rate plus 2% or 5.25%, whichever is higher (the federal stress test).

Housing costs, share of income

Housing plus debts, share of income

Extra rate for the stress test

The test rate is never below 5.25%.

You could afford a home of about

$512,513

That is a mortgage of $466,541 (including a $14,028 CMHC insurance premium) plus your $60,000 down payment. The monthly payment on the mortgage would be about $2,582 at 4.5%.

The share of your income that housing costs may take is the limit here.

Mortgage amount: $466,541
Monthly mortgage payment: $2,582
Housing share of income: 33.1%
Housing plus debts: 36.4%

Lenders test that you could pay at 6.50%, where the same mortgage costs about $3,125 a month. That test is what sets the limit above.

If the interest rate were different

Rate	Home price you could afford	Monthly payment
3.5%	$556,573	$2,556
4.5%	$512,513	$2,582
5.5%	$474,328	$2,607
6.5%	$441,088	$2,632

These are typical lender guidelines, checked October 2026, not a lender’s decision. Credit history, savings, the type of home, closing costs and each lender’s own rules all change what you can borrow, and a price you can qualify for may be more than you are comfortable paying. Ask a lender or mortgage broker for a pre-approval.

How lenders decide how much you can borrow

A lender mainly asks: can this person make the payments? To answer, it compares your housing costs and debt payments with your gross income (income before tax). Two limits are common. The first caps housing costs: the mortgage payment, property tax, heating and, if you have one, condo fees. The second caps housing costs plus every other debt payment, such as car loans and credit cards. This calculator finds the largest mortgage that fits both limits, then adds your down payment to give a home price.

Typical rules in each country

Country	Housing share of income	Housing plus debts	Other tests
Canada	39% (GDS)	44% (TDS)	Stress test at your rate + 2% or 5.25%, whichever is higher
United States	28%	36%	The 28/36 rule; some loans allow more
United Kingdom	35% (stand-in)	45% (stand-in)	Loans mostly capped near 4.5 times yearly income
Australia	35% (stand-in)	45% (stand-in)	Payment tested at your rate + 3%
India	40% (stand-in)	50% (stand-in)	Banks use a share of income called FOIR, often 40% to 50%

The Canadian stress test

In Canada, federally regulated lenders must check that you could still pay your mortgage if interest rates rose. They test the payment at your contract rate plus 2 percentage points, or at 5.25%, whichever is higher. This is why the mortgage you qualify for is smaller than the payment at today's rate would suggest. The calculator shows both the payment at your rate and at the test rate.

What goes into the housing costs

Mortgage payment (principal and interest).
Property tax.
Heating costs.
Half of any condo fees, in the Canadian method. This calculator counts the full amount you enter, which is more cautious.
In the United States, home insurance, and mortgage insurance (PMI) if you put down less than 20%.

How the down payment fits in

The home price is the mortgage you qualify for plus your down payment. In Canada the minimum down payment is 5% of the first $500,000, 10% of the part up to $1.5 million and 20% from $1.5 million. With less than 20% down, mortgage default insurance from CMHC is required, and its premium is added to the mortgage, which lowers the price you can reach. A small down payment can also limit the price by itself, because the minimum down payment grows with the price.

Ways to afford a higher price

Pay down or pay off debts: when the debt limit is the one that applies, every $100 a month of debt payments can lower the mortgage you qualify for by roughly $15,000 to $20,000.
Save a bigger down payment.
Shop for a lower interest rate. The table under the result shows how the price changes if rates move by a point or two.
Choose a longer amortization or loan term, which lowers the payment but raises the total interest.
Add a co-borrower with income.

Affordable is not the same as comfortable

The maximum a lender allows is a ceiling, not a target. Many households choose to spend less so there is room for repairs, childcare, saving, higher rates when the mortgage renews and everyday life. Compare the monthly payment with what you pay for housing now, and use the mortgage payment calculator to see the full schedule and total interest.

Keeping the figures up to date

The shares and test rates here are typical guidelines checked in October 2026. Lenders and regulators change them from time to time, and each lender has its own limits. Use the calculator for planning, then ask a lender or mortgage broker for a pre-approval.

How to use the Mortgage Affordability Calculator tool

Choose your country at the top. The currency and the typical lender rules change to match.
Type your yearly household income, your monthly debt payments and your monthly property tax, heating and condo costs.
Enter your down payment and the interest rate you expect, and pick the amortization or loan term.
Read the home price you could afford, the mortgage payment and the table showing how the price changes if rates move.

Frequently asked questions

How much house can I afford?

Lenders mostly look at two shares of your gross income: housing costs (mortgage payment, property tax, heating, condo fees) and all debt payments together. In Canada the usual limits are 39% and 44%, in the United States 28% and 36%. The calculator finds the largest mortgage that fits both limits, then adds your down payment.

What is the Canadian mortgage stress test?

Lenders check that you could still pay if rates rose: they test your payment at your rate plus 2 percentage points, or 5.25%, whichever is higher. That lowers the mortgage you qualify for compared with the payment at today's rate.

What are GDS and TDS?

GDS (gross debt service) is your housing costs as a share of gross income. TDS (total debt service) adds your other debt payments. Canadian lenders commonly limit them to 39% and 44% for insured mortgages. The US 28/36 rule is the same idea.

Does the down payment change what I can afford?

Yes. The price is the mortgage you qualify for plus your down payment. In Canada the minimum down payment is 5% of the first $500,000 and 10% of the rest up to $1.5 million, and 20% from $1.5 million, so a small down payment can limit the price on its own. With under 20% down, an insurance premium (CMHC) is added to the mortgage, which the calculator includes.

Is this a pre-approval?

No. It uses typical rules of thumb and the numbers you enter. A lender also checks your credit, employment, savings and the property. Treat the result as a planning estimate and ask a lender or mortgage broker for a pre-approval.

Should I spend the maximum I qualify for?

Not necessarily. Lender limits say what a lender will lend, not what is comfortable. Leave room for repairs, higher rates at renewal, childcare, saving and the costs of moving in.

Guides

How to Calculate a Mortgage Payment (Formula and Example)