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Free Canadian affordability estimates · rules checked against OSFI, CMHC and provincial sourcesHow we calculate
Mortgage Affordability Calculator.caHow much house can you afford in Canada?
Methodology

Rules, formulas and sources

Every rule the calculators use, the formula behind each result, and the primary source we checked it against on November 1, 2026. When a rule changes, we update it here and every calculator and guide changes with it.

Rules and numbers checked How we source rules

The affordability formula

The calculator finds the highest price P for which all of these hold, using a search over prices (each test only gets harder as the price rises):

  • Qualifying rate q = max(contract rate + 2, 5.25)%.
  • Mortgage = P − down payment, plus the insurance premium when the down payment is under 20%.
  • Payment = the level monthly payment on the mortgage at q over the amortization, with semi-annual compounding: monthly rate i = (1 + q/2)1/6 − 1.
  • GDS = (payment + property tax/12 + heating + 50% of condo fees) ÷ (income/12) ≤ 39%.
  • TDS = (GDS costs + other monthly debts) ÷ (income/12) ≤ 44%.
  • Down payment ≥ 5% of the first $500,000 + 10% of the rest (20% if P ≥ $1,500,000).
  • Insured mortgages (under 20% down): P below $1,500,000; amortization up to 25 years, or 30 for first-time buyers and new builds.

Results are rounded to the nearest $100 at or below the limit. Automated tests check the engine against hand-calculated cases before every release, such as the $2,908.02 monthly payment on $500,000 at 5% over 25 years.

Every rule we use

Rule values (checked November 1, 2026)
RuleValueSource
Stress testmax(contract + 2, 5.25%)OSFI
Max GDS / TDS (insured)39% / 44%CMHC
Insured price capbelow $1,500,000Finance Canada
Minimum credit score (insured)600CMHC
30-year premium surcharge+0.20%CMHC
Sales tax on premiumON 8%, QC 9% (9.975% from 2027), SK 6%CMHC
Condo fees in GDS/TDS50%CMHC
Default heating (example)$100/monthOur example; CMHC requires actual or a reasonable estimate
Legal, title insurance, inspection$1,800, $350, $550Our planning estimates

CMHC premiums

Premium as a share of the loan
Loan-to-valuePremiumOver 25 years
≤ 65%0.60%n/a
65.01–75%1.70%n/a
75.01–80%2.40%n/a
80.01–85%2.80%3.00%
85.01–90%3.10%3.30%
90.01–95%4.00%4.20%

Land transfer tax brackets

Marginal rates on the purchase price
JurisdictionBrackets
Ontario0.50% to $55,000; 1.00% to $250,000; 1.50% to $400,000; 2.00% to $2,000,000; 2.50% above
Toronto (municipal, from Apr 1, 2026)0.50% to $55,000; 1.00% to $250,000; 1.50% to $400,000; 2.00% to $2,000,000; 2.50% to $3,000,000; 4.40% to $4,000,000; 5.45% to $5,000,000; 6.50% to $10,000,000; 7.55% to $20,000,000; 8.60% above
British Columbia1.00% to $200,000; 2.00% to $2,000,000; 3.00% to $3,000,000; 5.00% above
Quebec (2026)0.50% to $62,900; 1.00% to $315,000; 1.50% above
Montréal (2026)0.50% to $62,900; 1.00% to $315,000; 1.50% to $552,300; 2.00% to $1,104,700; 2.50% to $2,136,500; 3.50% to $3,113,000; 4.00% above
Manitoba0.00% to $30,000; 0.50% to $90,000; 1.00% to $150,000; 1.50% to $200,000; 2.00% above
New Brunswick1% of the greater of price or assessed value
Nova ScotiaMunicipal rate (Halifax 1.5%); non-residents +10%
Prince Edward Island1%; first-time buyers exempt if eligible
Alberta$50 + $5 per $5,000 (transfer and mortgage)
Saskatchewan0.4% of value; mortgage $200–$1,000
Newfoundland and Labrador$100 + $0.40 per $100 over $500

What we don't model

  • Credit history, income type and stability, employment, and the property itself: all part of a real approval.
  • Lender-specific ratio limits for uninsured mortgages (you can change the limits in the calculator).
  • Rental income, non-traditional down payments, 3–4 unit properties, foreign-buyer and speculation taxes, and the territories.

Rule changes we track

Dated changes that affect affordability, newest first. We re-check every rule against its source and add new changes here.

Changelog (checked November 1, 2026)
DateChange
2027-01-01 (upcoming)Quebec tax on insurance premiums (including CMHC premiums) rises from 9% to 9.975%; Quebec transfer-duty thresholds index to $64,400 and $322,600.
2026-10-28Bank of Canada raises the policy rate to 2.50%.
2026-04-15Saskatchewan land titles transfer fee becomes 0.4% of value; mortgage registration fees tiered $200 to $1,000.
2026-04-01Toronto adds municipal land transfer tax bands above $3 million (4.40% to 8.60%).
2026-03-12First-time home buyers' GST/HST rebate becomes law (full to $1 million, phased out at $1.5 million, up to $50,000).
2026-01-01Quebec transfer-duty thresholds index to $62,900 and $315,000; Montréal publishes its 2026 brackets.
2026 tax yearHome Buyers' Plan repayment deferral extended to withdrawals made 2026 to 2028; the home buyers' amount is worth $1,400 (14%).
2025-04-01Nova Scotia's non-resident deed transfer tax rises from 5% to 10%.
2025-01-01Toronto's 10% municipal non-resident speculation tax starts.
2024-12-15Insured price cap rises from $1 million to $1.5 million; 30-year insured amortization opens to all first-time buyers and new builds.
2024-11-21OSFI stops requiring the stress test for uninsured straight switches at renewal; lender loan-to-income portfolio limits follow.

Market context

The calculator's example rate is the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (the latest month published); replace it with your own quote. For context, the Bank of Canada's policy rate is 2.50% (raised October 28, 2026), and its weekly 5-year conventional (posted) mortgage rate series was 6.19% for the week of October 28, 2026. Posted rates are usually above the rates borrowers actually get.

All sources

Primary sources (checked November 1, 2026)

  1. OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
  2. OSFI — Straight-switch exemption and loan-to-income portfolio limits (effective November 21, 2024). Checked .
  3. Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
  4. Justice Laws — Insurable Housing Loan Regulations (SOR/2012-282): qualifying rate and GDS/TDS for CMHC-insured loans (effective February 27, 2025). Checked .
  5. Justice Laws — Eligible Mortgage Loan Regulations (SOR/2012-281): the same rules for privately insured loans (effective February 27, 2025). Checked .
  6. CMHC — Mortgage loan insurance cost (premium table). Checked .
  7. CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
  8. CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
  9. Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
  10. CMHC — Calculating GDS / TDS. Checked .
  11. Sagen — Premium rates chart. Checked .
  12. Canada Guaranty — Products at a glance (effective July 1, 2025). Checked .
  13. Government of Ontario — Retail sales tax on insurance premiums. Checked .
  14. Revenu Québec — Insurance premium tax rate harmonized with the QST (effective April 9, 2026). Checked .
  15. Government of Saskatchewan — PST Bulletin PST-73: Insurance contracts (effective April 1, 2020). Checked .
  16. Justice Laws — Interest Act, R.S.C. 1985, c. I-15, s. 6. Checked .
  17. Government of British Columbia — Property transfer tax. Checked .
  18. Government of British Columbia — First time home buyers' exemption (effective April 1, 2024). Checked .
  19. Government of British Columbia — Newly built home exemption (effective April 1, 2024). Checked .
  20. Government of Ontario — Calculating land transfer tax. Checked .
  21. Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
  22. City of Toronto — Municipal land transfer tax rates and fees (effective April 1, 2026). Checked .
  23. City of Toronto — MLTT rebate opportunities (first-time purchasers). Checked .
  24. LégisQuébec — Act respecting duties on transfers of immovables (D-15.1), s. 2. Checked .
  25. Gouvernement du Québec — Transfer-duty brackets for 2027 (effective January 1, 2027). Checked .
  26. Ville de Montréal — How property transfer duties are calculated (effective January 1, 2026). Checked .
  27. Government of Manitoba — Land transfer tax. Checked .
  28. Government of New Brunswick — Real Property Transfer Tax Act, s. 2. Checked .
  29. Government of Nova Scotia — Municipal deed transfer tax rates (effective July 1, 2026). Checked .
  30. Government of Nova Scotia — Non-resident deed transfer tax changes (effective April 1, 2025). Checked .
  31. Government of Prince Edward Island — Real Property Transfer Tax Act. Checked .
  32. Government of Newfoundland and Labrador — Registry of Deeds schedule of fees. Checked .
  33. Government of Alberta — Land Titles and Surveys common documents fee schedule (effective October 1, 2026). Checked .
  34. Saskatchewan Registry Services (ISC) — Land titles fees table (effective April 15, 2026). Checked .
  35. Canada Revenue Agency — Contributing to your FHSA. Checked .
  36. Canada Revenue Agency — What is the Home Buyers' Plan. Checked .
  37. Canada Revenue Agency — Line 31270: Home buyers' amount. Checked .
  38. Canada Revenue Agency — Federal income tax rates for the current year. Checked .
  39. Canada Revenue Agency — GST/HST Memorandum 19-3-10: First-time home buyers' GST/HST rebate. Checked .
  40. Department of Finance Canada — Legislation to make life more affordable receives Royal Assent (Bill C-4) (effective March 12, 2026). Checked .
  41. City of Toronto — Property tax rates and fees (2026). Checked .
  42. City of Vancouver — Residential property tax rates (2026). Checked .
  43. City of Calgary — How your property tax bill is calculated (2026). Checked .
  44. City of Edmonton — Property taxes (2026 rates). Checked .
  45. Ville de Montréal — Taux de taxes pour 2026. Checked .
  46. CGTSIM — Understanding school tax (2026-27 rate). Checked .
  47. City of Winnipeg Assessment and Taxation — Property tax bills (2026 mill rates). Checked .
  48. City of Winnipeg Assessment and Taxation — Answer guide: residential portioning (45%). Checked .
  49. Halifax Regional Municipality — Tax rates (2026/27). Checked .
  50. City of Ottawa — What you get for your property taxes (2026, per $100,000 of assessment). Checked .
  51. CMHC — Identifying core housing need (affordable = under 30% of before-tax income). Checked .
  52. Financial Consumer Agency of Canada — Getting a mortgage pre-approval. Checked .
  53. Financial Consumer Agency of Canada — Down payment and mortgage loan insurance. Checked .
  54. CMHC — Mortgage loan insurance for consumers. Checked .
  55. Canada Revenue Agency — First Home Savings Account (FHSA). Checked .
  56. OSFI — Guideline B-20: Residential mortgage underwriting practices and procedures. Checked .
  57. OSFI — Loan-to-income limits for uninsured mortgage portfolios. Checked .
  58. Bank of Canada — Policy interest rate announcement (effective October 28, 2026). Checked .
  59. Bank of Canada — 5-year conventional mortgage lending rate (series V80691335) (effective October 28, 2026). Checked .