Mortgage affordability calculator for Canada
Your home budget, drawn up like a plan: the most a Canadian lender would lend under the stress test and CMHC's 39%/44% limits, the price that's actually comfortable, which rule holds you back, and what it would take to reach the home you want, with cash to close for every province.
Your affordability plan
How much a Canadian lender would lend, what feels affordable, and what would change it. Rules checked November 1, 2026.
- Mortgage
- $567,994
- incl. $22,894 CMHC premium
- You must qualify at
- 6.12%
- $3,421/mo P&I
- Cash to close
- $69,109
- down + $9,109 costs
- Down payment
- 9.9%
- minimum $35,510
Estimate, not advice. Lender maximum under federal and CMHC rules, not an approval. Credit, income history and the property also matter.
Lender maximum $605,100; comfortable $570,400. Mortgage $567,994, payment $2,740 a month at 4.12%.
What is driving this result
- At the 6.12% qualifying rate, the most a lender lets you put toward housing is $3,900 a month (GDS) and $3,950 after your $450 of other debts (TDS).
- GDS (housing costs ÷ income) is what stops a higher price. The other tests would allow $612,400 (TDS ≤ 44%) and $850,000 (Down payment rules).
- At the maximum your real monthly cost would be $3,218, or 32% of gross income. CMHC calls housing affordable below 30%.
- Cash to close is $69,109: your $60,000 down payment plus $9,109 of costs, of which $4,577 is land transfer tax after $4,000 of first-time buyer relief.
What would it take to buy $655,000?
Sensitivity: maximum price as two things change
| Income ↓ / Rate → | 3.12% | 3.62% | 4.12% | 4.62% | 5.12% | 5.62% | 6.12% |
|---|---|---|---|---|---|---|---|
| $80K | $433K | $419K | $403K | $388K | $373K | $360K | $347K |
| $100K | $549K | $532K | $510K | $489K | $470K | $452K | $436K |
| $120K | $653K | $632K | $605K (your inputs) | $584K | $561K | $539K | $519K |
| $140K | $756K | $731K | $699K | $670K | $643K | $618K | $598K |
| $160K | $850K | $830K | $794K | $760K | $729K | $700K | $673K |
| $180K | $850K | $850K | $850K | $850K | $815K | $782K | $752K |
Renewal check: your payment after a 5-year term
After five years you'll owe about $514,439 with 25 years left. If rates are higher then, your payment changes like this:
| Rate at renewal | Rate | Monthly payment | Change | Housing cost ÷ today's income |
|---|---|---|---|---|
| Same rate | 4.12% | $2,740 | −$0 | 32.2% |
| +1 point | 5.12% | $3,027 | +$288 | 35.1% |
| +2 points | 6.12% | $3,328 | +$589 | 38.1% |
The same household across Canada
Your income, debts, down payment and rate in each place. Cash to close changes with transfer tax, first-time relief and sales tax on the insurance premium; the price you can afford changes with property tax, shown for the eight cities with a published 2026 rate.
| Province | Transfer tax / fees | Cash to close |
|---|---|---|
| British Columbia | $2,102 | $64,802 |
| Alberta | $1,280 | $63,980 |
| Saskatchewan | $2,945 | $67,019 |
| Manitoba | $9,752 | $72,452 |
| Ontario | $4,577 | $69,109 |
| Quebec | $7,187 | $71,947 |
| New Brunswick | $6,051 | $68,751 |
| Nova Scotia | $9,077 | $71,777 |
| Prince Edward Island | $0 | $62,700 |
| Newfoundland and Labrador | $4,888 | $67,588 |
| City | Property tax | Maximum price | Transfer tax / fees | Cash to close |
|---|---|---|---|---|
| Vancouver, BC | 0.336% | $637,000 | $2,740 | $65,440 |
| Calgary, AB | 0.665% | $611,400 | $1,290 | $63,990 |
| Edmonton, AB | 1.036% | $588,900 | $1,240 | $63,940 |
| Winnipeg, MB | 1.321% | $569,800 | $9,046 | $71,746 |
| Toronto, ON | 0.767% | $603,900 | $8,631 | $73,159 |
| Ottawa, ON | 1.271% | $573,100 | $3,937 | $67,992 |
| Montréal, QC | 0.700% | $608,800 | $7,525 | $72,299 |
| Halifax, NS | 1.113% | $583,700 | $8,756 | $71,456 |
Where the monthly money goes at the maximum
- Mortgage payment: $2,740
- Property tax: $378
- Heating: $100
Show the numbers
| Year | Principal | Interest |
|---|---|---|
| Yr 1 | $10K | $23K |
| Yr 2 | $10K | $23K |
| Yr 3 | $11K | $22K |
| Yr 4 | $11K | $22K |
| Yr 5 | $12K | $21K |
| Yr 6 | $12K | $21K |
| Yr 7 | $13K | $20K |
| Yr 8 | $13K | $20K |
| Yr 9 | $14K | $19K |
| Yr 10 | $14K | $19K |
| Yr 11 | $15K | $18K |
| Yr 12 | $15K | $17K |
| Yr 13 | $16K | $17K |
| Yr 14 | $17K | $16K |
| Yr 15 | $17K | $15K |
| Yr 16 | $18K | $15K |
| Yr 17 | $19K | $14K |
| Yr 18 | $20K | $13K |
| Yr 19 | $21K | $12K |
| Yr 20 | $21K | $11K |
| Yr 21 | $22K | $11K |
| Yr 22 | $23K | $10K |
| Yr 23 | $24K | $9K |
| Yr 24 | $25K | $8K |
| Yr 25 | $26K | $7K |
| Yr 26 | $27K | $6K |
| Yr 27 | $28K | $4K |
| Yr 28 | $30K | $3K |
| Yr 29 | $31K | $2K |
| Yr 30 | $32K | $716 |
Year-by-year amortization table
| Year | Payments | Interest | Principal | Interest to date | Balance at year end |
|---|---|---|---|---|---|
| 1 | $32,875 | $23,020 | $9,856 | $23,020 | $558,139 |
| 2 | $32,875 | $22,610 | $10,266 | $45,629 | $547,873 |
| 3 | $32,875 | $22,182 | $10,693 | $67,812 | $537,179 |
| 4 | $32,875 | $21,737 | $11,138 | $89,549 | $526,041 |
| 5 (end of term) | $32,875 | $21,274 | $11,602 | $110,822 | $514,439 |
| 6 | $32,875 | $20,791 | $12,085 | $131,613 | $502,354 |
| 7 | $32,875 | $20,288 | $12,588 | $151,901 | $489,766 |
| 8 | $32,875 | $19,764 | $13,112 | $171,664 | $476,655 |
| 9 | $32,875 | $19,218 | $13,658 | $190,882 | $462,997 |
| 10 | $32,875 | $18,649 | $14,226 | $209,532 | $448,771 |
| 11 | $32,875 | $18,057 | $14,818 | $227,589 | $433,953 |
| 12 | $32,875 | $17,440 | $15,435 | $245,029 | $418,518 |
| 13 | $32,875 | $16,798 | $16,078 | $261,827 | $402,440 |
| 14 | $32,875 | $16,129 | $16,747 | $277,956 | $385,693 |
| 15 | $32,875 | $15,432 | $17,444 | $293,388 | $368,250 |
| 16 | $32,875 | $14,706 | $18,170 | $308,093 | $350,080 |
| 17 | $32,875 | $13,949 | $18,926 | $322,042 | $331,153 |
| 18 | $32,875 | $13,161 | $19,714 | $335,204 | $311,439 |
| 19 | $32,875 | $12,341 | $20,535 | $347,545 | $290,905 |
| 20 | $32,875 | $11,486 | $21,389 | $359,031 | $269,515 |
| 21 | $32,875 | $10,596 | $22,280 | $369,627 | $247,236 |
| 22 | $32,875 | $9,668 | $23,207 | $379,295 | $224,029 |
| 23 | $32,875 | $8,702 | $24,173 | $387,998 | $199,856 |
| 24 | $32,875 | $7,696 | $25,179 | $395,694 | $174,677 |
| 25 | $32,875 | $6,648 | $26,227 | $402,342 | $148,449 |
| 26 | $32,875 | $5,557 | $27,319 | $407,899 | $121,130 |
| 27 | $32,875 | $4,419 | $28,456 | $412,318 | $92,674 |
| 28 | $32,875 | $3,235 | $29,641 | $415,553 | $63,034 |
| 29 | $32,875 | $2,001 | $30,874 | $417,554 | $32,159 |
| 30 | $32,875 | $716 | $32,159 | $418,270 | $0 |
| Total | $986,264 | $418,270 | $567,994 | $0 |
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Assumptions & sources
Assumptions
- Qualifying rate = the higher of your rate + 2 points or 5.25% (OSFI B-20 for uninsured; Department of Finance rules for insured).
- GDS includes principal and interest at the qualifying rate, property tax, heating and 50% of condo fees. TDS adds other monthly debt payments.
- Minimum down payment: 5% of the first $500,000, 10% of the rest; 20% at or above $1,500,000.
- Insured mortgages: CMHC premium by loan-to-value, added to the loan; +0.20% for amortizations over 25 years. Sales tax on the premium (ON, QC, SK) is paid in cash at closing.
- "Comfortable" = the highest price whose monthly cost at your actual rate (mortgage, property tax, heating, full condo fees) stays within your chosen share of gross income, and that a lender would also approve.
- Payments use semi-annual compounding, the Canadian fixed-rate convention. Prices are the nearest $100 at or below the limit.
- Closing costs: transfer tax or fees for Ontario (other) after any first-time relief, plus estimates of $1,800 legal/notary, $350 title insurance and $550 inspection/appraisal.
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- CMHC — Identifying core housing need (affordable = under 30% of before-tax income). Checked .
- Justice Laws — Interest Act, R.S.C. 1985, c. I-15, s. 6. Checked .
- Government of Ontario — Calculating land transfer tax. Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
- Government of Ontario — Retail sales tax on insurance premiums. Checked .
- Bank of Canada — Effective rate on new insured fixed mortgages, 5 years and over (series V122667780) (effective August 1, 2026). Checked .
Full formulas and every rule: rules, formulas & sources.
Rates on record
- 2.50%Bank of Canada policy rateBank of Canada, Oct 29, 2026
- 4.12%Avg. new insured 5-yr+ fixedBank of Canada, month of Aug 2026
- 4.58%Avg. new uninsured 5-yr+ fixedBank of Canada, month of Aug 2026
- 6.19%Posted 5-yr conventionalBank of Canada, Oct 28, 2026
Averages and posted rates for context, not offers. Average effective rates are what borrowers actually got that month; posted rates are usually higher than what you'll be offered.
How Canadian lenders decide how much you can afford
Every federally regulated lender, and every insured mortgage, runs the same three checks. The calculator above runs all three and tells you which one limits you.
- The stress test. Payments are tested at the qualifying rate: your rate plus 2 points, or 5.25% if that's higher. Stress test guide
- Debt-service ratios. Housing costs must stay within 39% of gross income (GDS) and all debts within 44% (TDS). GDS and TDS explained
- Down payment and insurance rules. At least the federal minimum down; under 20% the mortgage is insured, priced below $1,500,000, with a premium added to the loan. Down payment rules
More affordability calculators
Guides that answer the next question
Affordability where you're buying
Land transfer tax, first-time buyer relief, sales tax on insurance premiums and property tax differ by province and city. These pages show what changes and why.
Frequently asked questions
How much mortgage can I afford in Canada?
Enough that your housing costs stay within 39% of gross income and all debts within 44%, tested at the qualifying rate. With the example inputs above ($120,000 income, $60,000 down, $450/month of debts, 4.12%), that's a mortgage of about $567,994 on a $605,100 home.
What is the stress test rate in 2026?
The greater of your contract rate plus 2 percentage points or 5.25%, for both insured and uninsured mortgages from federally regulated lenders (checked November 1, 2026).
How much do I need for a down payment?
5% of the first $500,000 and 10% of the rest for homes under $1,500,000; 20% at $1,500,000 or more. Under 20% down you also pay a mortgage insurance premium.
Is this calculator's result a pre-approval?
No. It estimates a lender's maximum under federal and CMHC rules. A pre-approval also checks your credit, documents and the lender's own policies.
Does the calculator include closing costs?
Yes. It adds land transfer tax for your province or city (after first-time buyer relief), sales tax on any CMHC premium, and estimates for legal, title insurance and inspection, so you can see total cash to close.
Primary sources
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
- CMHC — Calculating GDS / TDS. Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
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