How much house can I afford in Canada?
Canadian lenders cap housing costs at 39% of gross income (GDS) and total debt at 44% (TDS), using the stress-test qualifying rate — not your contract rate. On a $100,000 salary with no debts and 5% down, most buyers qualify for $450,000 to $500,000.
- GDS limit: 39% of gross monthly income for housing
- TDS limit: 44% including all debt payments
- Stress test reduces borrowing power by roughly 20%
Source: OSFI
How much can you afford?
Enter your financial details to find your maximum purchase price, based on Canadian mortgage stress test rules and GDS/TDS ratios.
Car loans, student loans, credit cards, lines of credit
Current typical rate: ~4.5%
30-year amortization requires 20%+ down payment.
% of home value per year (typical: 0.5% - 2%)
50% of condo fees count toward GDS/TDS ratios
You could afford up to
$445,173
Based on 6.5% stress test rate • GDS is the binding constraint
Maximum Mortgage
$407,423
Includes $12,250 CMHC insurance
Your Down Payment
$50,000
11.2% of purchase price
Monthly Payment
$2,775.96
All housing costs included
CMHC Insurance
$12,250
Premium rate: 3.1%
Stress Test Qualification
You qualify at 6.5% (your rate 4.5% + 2%, or 5.25%, whichever is higher).
Stress test monthly mortgage payment: $2,729.02
Limit: 39.0%
Limit: 44.0%
Verify these numbers with a free pre-approval review
Our licensed mortgage team can confirm your affordability estimate and walk you through pre-approval — no obligation.
How Much Home Can You Afford in Canada?
Understanding GDS and TDS ratios, the stress test, and how your down payment affects your maximum purchase price.
39%
GDS ratio limit
Housing costs cap
44%
TDS ratio limit
All debts cap
~20%
Stress test reduction
Borrowing power impact
GDS and TDS Ratios Explained
The GDS ratio includes your mortgage payment (principal and interest), property taxes, heating costs, and 50% of any condominium fees. All of these are divided by your gross monthly income. The TDS ratio takes everything in the GDS calculation and adds all other debt obligations: car loan payments, student loan payments, credit card minimum payments, and lines of credit.
To qualify, both ratios must fall within the limits simultaneously. For example, if your household earns $8,333 per month ($100,000 annually), your maximum housing costs under the GDS rule would be $3,250 (39%), and your total debt payments including housing cannot exceed $3,667 (44%). Learn more on the FCAC mortgage page.
How the Stress Test Reduces Your Maximum
When calculating your GDS and TDS ratios, lenders do not use your actual mortgage rate. Instead, they use the qualifying rate mandated by OSFI's B-20 guideline , the higher of your contract rate plus 2% or a floor of 5.25%.
Because the qualifying rate is higher than what you will actually pay, your calculated payments are larger, which means you qualify for a smaller mortgage. In practice, the stress test reduces your maximum borrowing power by roughly 20% compared to what you could borrow at your actual rate.
Down Payment and Affordability
A larger down payment directly increases the home price you can afford because you need a smaller mortgage. The minimum down payment in Canada is 5% on the first $500,000 of purchase price and 10% on any portion above $500,000 (up to $1,499,999). For homes priced at $1.5 million or more, you need at least 20% down.
A bigger down payment also eliminates CMHC mortgage insurance if you reach the 20% threshold, which further reduces your monthly payment and lets you qualify for a higher purchase price.
Frequently Asked Questions
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GDS and TDS Ratios in Canada (2026)
The Gross Debt Service (GDS) ratio includes mortgage payment, property taxes, heating, and 50% of condo fees. Total Debt Service (TDS) adds car loans, credit cards, and other obligations. Both must pass at the stress test qualifying rate. Read our full GDS/TDS guide for worked examples.
How Much Can I Afford in Ontario?
Ontario property taxes and land transfer tax affect how much home you can afford. Higher municipal taxes in Toronto, Hamilton, and Ottawa reduce your GDS headroom compared to lower-tax regions. Use this calculator with your actual property tax estimate for accurate Ontario results.
Learn more
- Dive deeper into the GDS and TDS ratios lenders use to determine how much you can borrow.
- Take our financial readiness checklist to see if you are truly prepared beyond what the numbers show.
- Learn how the mortgage stress test reduces your maximum qualifying amount and why it exists.