How Much Home Can You Afford in Canada?
Canadian lenders qualify you using the stress test at max(rate + 2%, 5.25%), plus GDS and TDS debt ratio caps. Get your actual lender-qualifying number — not an oversimplified estimate.
What you'll need
- Your gross annual income (and co-applicant's, if any)
- Monthly debt payments (car loans, student loans, credit card minimums)
- Your available down payment
- Your expected mortgage rate
How it works
Enter your income
Gross annual income for you and any co-applicant. Include employment, self-employment, and rental income.
Add debts & down payment
Monthly debt payments (car, student loans, credit cards) and your available down payment amount.
Get your stress-tested limit
We apply the OSFI B-20 stress test at max(your rate + 2%, 5.25%) and apply 39% GDS and 44% TDS caps.
Maximum Affordability by Income (Stress Test at 7.09%)
| Gross Income | $50K Down | $100K Down | $200K Down |
|---|---|---|---|
| $80,000 | ~$320K | ~$380K | ~$480K |
| $120,000 | ~$500K | ~$580K | ~$700K |
| $160,000 | ~$680K | ~$780K | ~$940K |
| $200,000 | ~$860K | ~$980K | ~$1.18M |
Estimates at 5.09% contract rate (stress tests at 7.09%). Assumes $5K/yr property tax, $150/mo heat, no other debts.
Frequently asked questions
What is the Canadian mortgage stress test?
The Canadian mortgage stress test (OSFI B-20) requires lenders to qualify borrowers at the greater of: their contract interest rate plus 2%, or 5.25%. This ensures borrowers can still afford payments if rates rise. It applies to all federally regulated lenders.
What are GDS and TDS ratios in Canada?
GDS (Gross Debt Service) ratio is the percentage of gross monthly income used for housing costs (mortgage principal and interest, property tax, heat, and 50% of condo fees). The limit is 39%. TDS (Total Debt Service) adds all other debt payments and is limited to 44%.
How much home can I afford in Canada on a $120,000 salary?
On $120,000 gross income with $100,000 down payment and no other debts, the Canadian stress test qualifies you for approximately $600,000–$700,000 depending on the current mortgage rate. Use this calculator to get your specific number.
Does the stress test apply to renewals?
The stress test does NOT apply to uninsured mortgage renewals when you stay with the same lender. However, if you switch lenders at renewal or refinance, the stress test applies. Insured mortgage renewals (under 20% equity) are also subject to the stress test when switching.
Authoritative resources
Find your true affordability limit.
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