Max Property Price
$467,487.00
Max Mortgage
$398,336.00
Monthly Payment
$2,443.76
GDS Ratio (max 39%)
37.7%
TDS Ratio (max 44%)
44.0%
CMHC Insurance Required: Your down payment is less than 20% of the max property price. CMHC mortgage insurance of $10,849.64 would be added to your mortgage.
Understanding how much house you can afford in Canada
GDS (Gross Debt Service) ratio is your housing costs (mortgage payment, property tax, and heating) divided by your gross monthly income. TDS (Total Debt Service) ratio adds all your other debts on top. Most lenders require GDS below 39% and TDS below 44%. These ratios help lenders decide how much you can safely borrow.
The minimum down payment depends on the purchase price. For homes up to $500,000, you need at least 5%. For the portion between $500,000 and $1.5 million, you need 10%. For homes over $1.5 million, you need at least 20%. If your down payment is less than 20%, you must pay CMHC mortgage insurance.
The mortgage stress test requires lenders to check that you can afford payments at the higher of your contract rate plus 2%, or the Bank of Canada qualifying rate (currently 5.25%). This applies to all federally regulated lenders, even if you have a large down payment. The stress test reduces how much you can borrow but protects you if rates go up.
CRA-Aligned: GDS and TDS limits follow standard Canadian lending guidelines. CMHC insurance rates are current as of 2025. Actual approval depends on your lender, credit score, and the stress test rate.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
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