Your affordability plan

How much a Canadian lender would lend, what feels affordable, and what would change it. Rules checked November 1, 2026.

Try a household:
What if:
Income and debts
Before tax, everyone on the mortgage. Lenders use stable, provable income.
Car, student loans, support. Credit cards and unsecured lines: lenders count at least 3% of the balance a month (CMHC).
Down payment and mortgage
Cash toward the price. Closing costs are added separately.
Default: the Bank of Canada's average on new 5-year+ fixed mortgages (2026-08): 4.12% insured, 4.58% uninsured, picked to match your down payment. Use your own quote.
Amortization
Allows a 30-year insured amortization and land transfer tax relief where offered.
New builds can also use a 30-year insured amortization.
Where and what you're buying
Sets land transfer tax and, for 8 cities, the 2026 property-tax rate.
Example rate. Use your municipality's published rate or last tax bill.
Counted in GDS. Use your estimate.
Lenders count 50% in GDS. Enter 0 for freehold.
Your comfort level and lender limits
CMHC considers housing affordable below 30% of before-tax income.

Defaults are CMHC's 39% / 44% maximums for insured mortgages. Uninsured lenders set their own; many use the same or lower.

Lender maximum$575,700$2,831/mo mortgage · insured
Comfortable (30% of income)$528,000$3,000/mo all-in housing
What limits you
GDS ≤ 39%$575,700
TDS ≤ 44%$582,600
Down payment rules$850,000
Mortgage
$531,687
incl. $15,987 CMHC premium
You must qualify at
6.12%
$3,440/mo P&I
Cash to close
$67,968
down + $7,968 costs
Down payment
10.4%
minimum $32,570
GDS at the maximum39.0% of 39% limit
TDS at the maximum43.5% of 44% limit
Less than 20% down, so this would be an insured (high-ratio) mortgage and the premium is added to the loan.

Estimate, not advice. Lender maximum under federal and CMHC rules, not an approval. Credit, income history and the property also matter.

Lender maximum $575,700; comfortable $528,000. Mortgage $531,687, payment $2,831 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 $582,600 (TDS ≤ 44%) and $850,000 (Down payment rules).
  • At the maximum your real monthly cost would be $3,291, or 33% of gross income. CMHC calls housing affordable below 30%.
  • Cash to close is $67,968: your $60,000 down payment plus $7,968 of costs, of which $3,989 is land transfer tax after $4,000 of first-time buyer relief.

What would it take to buy $625,000?

Each card changes one thing and holds the rest at your inputs.
Income$132,100$12,100 more a year
Down payment$112,400$52,400 more saved
Other debtsNot enough aloneeven with no debts
Interest rateNot enough alonethe stress-test floor stops it

Sensitivity: maximum price as two things change

Compare
Maximum price by household income and interest rate
Income ↓ / Rate →3.12%3.62%4.12%4.62%5.12%5.62%6.12%
$80K$407K$396K$382K$369K$357K$345K$334K
$100K$515K$500K$482K$465K$449K$433K$419K
$120K$611K$598K$576K (your inputs)$555K$535K$516K$499K
$140K$707K$686K$660K$636K$612K$595K$575K
$160K$802K$779K$748K$720K$694K$669K$646K
$180K$850K$850K$837K$805K$775K$747K$721K
Each cell is a full run of the calculator with your other inputs. The outlined cell is you; green cells are above your current maximum, red cells below it.

Renewal check: your payment after a 5-year term

After five years you'll owe about $463,817 with 20 years left. If rates are higher then, your payment changes like this:

Payment at renewal
Rate at renewalRateMonthly paymentChangeHousing cost ÷ today's income
Same rate4.12%$2,831+$032.9%
+1 point5.12%$3,078+$24735.4%
+2 points6.12%$3,335+$50337.9%

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.

Cash to close on $575,700, by province (with your $60,000 down)
ProvinceTransfer tax / feesCash to close
British Columbia$1,514$64,214
Alberta$1,215$63,915
Saskatchewan$2,828$66,487
Manitoba$9,164$71,864
Ontario$3,989$67,968
Quebec$6,746$70,885
New Brunswick$5,757$68,457
Nova Scotia$8,636$71,336
Prince Edward Island$0$62,700
Newfoundland and Labrador$4,626$67,326
Your maximum price in cities with a published 2026 property-tax rate
CityProperty taxMaximum priceTransfer tax / feesCash to close
Vancouver, BC0.336%$600,000$2,000$64,700
Calgary, AB0.665%$581,400$1,225$63,925
Edmonton, AB1.036%$557,500$1,175$63,875
Winnipeg, MB1.321%$540,500$8,460$71,160
Toronto, ON0.767%$574,600$7,459$71,435
Ottawa, ON1.271%$543,400$3,343$67,242
Montréal, QC0.700%$579,000$6,929$71,077
Halifax, NS1.113%$552,800$8,292$70,992

Where the monthly money goes at the maximum

  • Mortgage payment: $2,831
  • Property tax: $360
  • Heating: $100
Paying off $531,687 at 4.12% over 25 yearsStacked bars for 25 years. Interest falls and principal rises each year as the balance shrinks. Total interest $317,756.$0$13K$25K$38K$50KYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 22Yr 25
Show the numbers
Paying off $531,687 at 4.12% over 25 years
YearPrincipalInterest
Yr 1$12K$21K
Yr 2$13K$21K
Yr 3$14K$20K
Yr 4$14K$20K
Yr 5$15K$19K
Yr 6$15K$19K
Yr 7$16K$18K
Yr 8$17K$17K
Yr 9$17K$17K
Yr 10$18K$16K
Yr 11$19K$15K
Yr 12$20K$14K
Yr 13$20K$14K
Yr 14$21K$13K
Yr 15$22K$12K
Yr 16$23K$11K
Yr 17$24K$10K
Yr 18$25K$9K
Yr 19$26K$8K
Yr 20$27K$7K
Yr 21$28K$6K
Yr 22$29K$5K
Yr 23$31K$3K
Yr 24$32K$2K
Yr 25$33K$740
Year-by-year amortization table
Monthly payment $2,831.47; the shaded row is the end of a 5-year term.
YearPaymentsInterestPrincipalInterest to dateBalance at year end
1$33,978$21,488$12,490$21,488$519,197
2$33,978$20,968$13,010$42,455$506,187
3$33,978$20,426$13,551$62,882$492,635
4$33,978$19,862$14,116$82,744$478,520
5 (end of term)$33,978$19,275$14,703$102,019$463,817
6$33,978$18,663$15,315$120,681$448,502
7$33,978$18,025$15,953$138,706$432,549
8$33,978$17,361$16,617$156,067$415,933
9$33,978$16,669$17,308$172,737$398,624
10$33,978$15,949$18,029$188,686$380,596
11$33,978$15,199$18,779$203,885$361,817
12$33,978$14,417$19,561$218,301$342,256
13$33,978$13,603$20,375$231,904$321,881
14$33,978$12,755$21,223$244,659$300,658
15$33,978$11,871$22,106$256,530$278,551
16$33,978$10,951$23,027$267,481$255,525
17$33,978$9,993$23,985$277,474$231,540
18$33,978$8,994$24,983$286,468$206,556
19$33,978$7,954$26,023$294,422$180,533
20$33,978$6,871$27,107$301,293$153,426
21$33,978$5,743$28,235$307,036$125,192
22$33,978$4,568$29,410$311,604$95,781
23$33,978$3,343$30,634$314,947$65,147
24$33,978$2,068$31,909$317,016$33,238
25$33,978$740$33,238$317,756$0
Total$849,442$317,756$531,687$0

Your saved scenarios

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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

  1. OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
  2. Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
  3. CMHC — Mortgage loan insurance cost (premium table). Checked .
  4. Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
  5. CMHC — Calculating GDS / TDS. Checked .
  6. CMHC — Identifying core housing need (affordable = under 30% of before-tax income). Checked .
  7. Justice Laws — Interest Act, R.S.C. 1985, c. I-15, s. 6. Checked .
  8. Government of Ontario — Calculating land transfer tax. Checked .
  9. Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
  10. Government of Ontario — Retail sales tax on insurance premiums. Checked .
  11. 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.

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