Guides
Mortgage affordability guides for Canadian buyers
Plain-language guides to how Canadian lenders decide what you can afford: the stress test, GDS and TDS, down payments, mortgage insurance, closing costs and first-time buyer programs, each with worked examples and primary sources.
How much house can I afford in Canada?Canadian lenders cap housing costs at 39% of income (GDS) and all debts at 44% (TDS), at the stress-test rate. See what that means for your income.Read →Affordability rules of thumb, tested against Canadian rules"4.5 times income", the 30% rule, 28/36 and "3 times income", tested against Canada's stress test and CMHC limits: when each holds and when it fails.Read →The mortgage stress test in CanadaCanada's mortgage stress test qualifies you at your rate plus 2 points or 5.25%, whichever is higher. See examples, renewal rules and how to pass.Read →GDS and TDS ratios explainedGDS caps housing costs at 39% of gross income and TDS caps all debts at 44% for insured mortgages. See the formulas, what counts and a worked example.Read →How much income do you need to buy a house in Canada?A $500,000 home needs about $111,100 of household income with $25,000 down; $1,000,000 needs about $213,900. See the table by price and what changes it.Read →Minimum down payment rules in CanadaCanada's minimum down payment is 5% of the first $500,000 and 10% of the rest, or 20% at $1,500,000+. A $700,000 house needs $45,000. See the table by price.Read →CMHC mortgage insurance: premiums and rulesCMHC insurance costs 0.60% to 4.00% of your mortgage when you put less than 20% down. See the premium table, 30-year surcharge, sales tax and examples.Read →Insured vs uninsured mortgages: high-ratio vs conventionalAn insured (high-ratio) mortgage has under 20% down and a premium; uninsured has 20%+ down. Compare the stress test, price cap, amortization and cost.Read →30-year amortization in Canada: who qualifies and what it costs30-year insured mortgages are for first-time buyers and new builds, with a 0.20-point premium surcharge. Compare payments, interest and equity: 25 vs 30 years.Read →Closing costs in Canada: what you'll pay and land transfer tax by provinceClosing costs on a $600,000 home run about 0.7% to 3.3% of the price before rebates. See land transfer tax in every province, first-time relief and fees.Read →First-time home buyer programs in Canada (2026)FHSA ($8,000/yr, $40,000 lifetime), Home Buyers' Plan ($60,000), the GST rebate (up to $50,000) and more for first-time buyers in 2026.Read →Mortgage pre-approval in Canada: how it worksA pre-approval checks your income, debts and credit at the stress-test rate. See how much you could get, what lenders ask for and the 600 credit minimum.Read →How to qualify for a bigger mortgage (and when not to)Find the limit you hit (GDS 39%, TDS 44% or down payment), then see what paying off debt, a co-borrower, more down or 30 years adds.Read →