How Much House Can I Afford in Canada?

Based on your income, debts, and down payment — find your realistic maximum home price in Canada.

Before you start house hunting, knowing your realistic budget is essential. In Canada, your maximum home price is determined by your income, existing debts, down payment, and the mortgage stress test. This calculator works through all of it and gives you a clear number to work with.

Home Affordability Calculator

Annual Gross Income ($)

Co-Borrower Income ($)

Down Payment Available ($)

Monthly Other Debt Payments ($)

Interest Rate (%)

Amortization (years)

Maximum home price:

Max Mortgage

Monthly Payment

Stress Test Rate

How Canadian Lenders Calculate Affordability

Canadian lenders use two ratios to determine your maximum mortgage:

Gross Debt Service (GDS) — 39% Limit

Housing costs (mortgage payment at stress test rate + property taxes + heating + 50% condo fees) cannot exceed 39% of gross monthly income.

Total Debt Service (TDS) — 44% Limit

All debt payments (GDS + car loans + credit cards + student loans) cannot exceed 44% of gross monthly income.

The Mortgage Stress Test: Since 2018, all Canadian mortgage applicants must qualify at the higher of their actual rate + 2%, or the Bank of Canada's 5-year benchmark rate (currently around 5.25%). This means you must qualify at roughly 7–8% even if your actual rate is 5%. This significantly reduces maximum home prices.

Down Payment Rules in Canada (2026)

5%: Minimum for homes under $500,000 (CMHC insurance required)
5–10%: Minimum for $500K–$999K portion (blended requirement)
20%+: Required for homes $1M and above (no CMHC available)
20%+: Required to avoid CMHC insurance on any home

Use our CMHC insurance calculator to see what insurance premiums will apply to your mortgage.

Other Costs to Budget For

The purchase price isn't the only cost. Budget for:

Land transfer tax: 1.5–2.5% in most provinces; double in Toronto (provincial + municipal)
Legal fees: $1,500–$2,500
Home inspection: $400–$600
Moving costs: $1,000–$5,000+
Immediate repairs: Budget 1–2% of home price annually for maintenance

Learn more about the true cost of owning a home in Canada.

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