See how much mortgage you can afford under Canada's 2026 stress test rules — based on your income, debts, and down payment.
Your mortgage is qualified at the higher of: your actual rate + 2%, OR 5.25%. With today's rates (~5.2%), the qualifying rate is typically 7.2%. This reduces borrowing power by ~20% vs unqualified.
Gross Debt Service: housing costs (mortgage P+I, property tax, heating, 50% condo fees) ÷ gross income. Must be under 39%.
Total Debt Service: all housing costs + all other debt payments ÷ gross income. Must be under 44%. This is where car loans and credit cards cut into your mortgage room.
Required if down payment is under 20%. Rate: 4.00% (5–9.99% down), 3.10% (10–14.99%), 2.80% (15–19.99%). Added to mortgage. Max insured home price: $1.5M as of Dec 2024.
KOHO pays 3.0% interest automatically on your balance. For every $100 saved for your down payment, that's $300/year extra — with zero effort and zero fees.
Open KOHO Free + $100 Bonus →| City / Region | Avg Home Price | Income Needed (est.) | Min Down (5%) |
|---|---|---|---|
| Greater Vancouver, BC | $1,230,000 | ~$220,000 | $73,000 |
| Toronto, ON | $1,050,000 | ~$190,000 | $63,000 |
| Victoria, BC | $885,000 | ~$160,000 | $53,000 |
| Calgary, AB | $620,000 | ~$110,000 | $37,000 |
| Ottawa, ON | $580,000 | ~$100,000 | $34,000 |
| Edmonton, AB | $420,000 | ~$75,000 | $25,000 |
| Montreal, QC | $510,000 | ~$90,000 | $30,500 |
| Halifax, NS | $460,000 | ~$82,000 | $27,500 |
| Winnipeg, MB | $380,000 | ~$68,000 | $22,500 |
CREA average benchmark prices, approximate. Income estimate based on 25-year amortization at 5.2% rate, 20% down, stress tested at 7.2%.
Every $1 of monthly debt payment reduces your mortgage room by ~$7–10. A $400/mo car payment costs you $40,000–$50,000 in mortgage borrowing power. Pay off debt before applying.
Putting 20% down saves thousands in CMHC insurance (4.00% of mortgage = $20,000 on a $500K mortgage). It also qualifies you for any lender, not just CMHC-approved ones.
30-year amortization (available with 20%+ down) reduces monthly payments vs 25 years by ~10%. You pay more interest over time, but qualify for more with the same income.
Adding a spouse, partner, or family member with income to your mortgage application can significantly increase your qualification amount. Both incomes count toward GDS/TDS ratios.
A credit score above 720 gets you the best mortgage rates. Even a 0.25% better rate on a $500K mortgage saves ~$15,000 over 5 years. Use KOHO's credit-building feature to improve your score.
Rates vary significantly between lenders. A mortgage broker compares 30+ lenders at once, often finding 0.25–0.50% better rates than going directly to your bank. No cost to use a broker.