OSFI B-20 stress test · GDS & TDS ratios · no signup
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.
Educational calculators — always consult a licensed professional before making financial decisions.
Before tax. Include all employment income, self-employment net, rental income.
Enter $0 if you're applying alone.
Car loans, student loans, credit card minimums, other mortgages. Not utilities.
Including FHSA, RRSP HBP, savings. Min 5% of purchase price required.
The stress test qualifies you at max(your rate + 2%, 5.25%).
Maximum Purchase Price
$572,156
Based on OSFI B-20 stress test at your qualifying rate
GDS Ratio
39.0%
✗ Exceeds 39% limit
TDS Ratio
44.0%
✗ Exceeds 44% limit
Stress Test Details
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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
What you'll get
- ✓Max purchase price — Under the stress test
- ✓GDS & TDS ratios — See where you stand vs. limits
- ✓Qualifying rate — The rate lenders actually use
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.
Authoritative resources
Why Canadian payments differ from American ones
Canadian mortgage interest is compounded semi-annually, not in advance — a requirement of the federal Interest Act — while US mortgages compound monthly. At the same posted rate, the Canadian payment comes out slightly lower.
It is a small difference per month and a large one over an amortization, and it is why a US mortgage calculator gives the wrong answer for a Canadian mortgage. Every calculator on this site’s Canadian pages uses the semi-annual convention.
Term is not amortization
The amortization is how long the mortgage takes to pay off — commonly 25 years. The term is how long your current rate and contract last, usually one to five years. At the end of the term the balance comes due and you renew, at whatever rates exist then.
This is the structural difference from a US 30-year fixed, where the rate is locked for the whole amortization. A Canadian borrower re-prices every few years, which is why what happens at renewal matters as much as the rate you start on.
When mortgage insurance is mandatory
Put down less than 20% and mortgage loan insurance is compulsory, not optional. The premium runs from 2.8% of the loan at 15–19.99% down up to 4% at 5–9.99% down, and it is normally added to the mortgage rather than paid up front — so you pay interest on it for the life of the loan.
Two limits are worth knowing. Insurance is unavailable above $1.5M, so above that price 20% down is effectively mandatory. And in most provinces the PST on the premium must be paid in cash at closing — it cannot be rolled into the mortgage.
Since 15 December 2024, a 30-year insured amortization is available to all first-time buyers, whether resale or new build, and to any buyer of a new build. It lowers the monthly payment and raises total interest, and it carries a 0.2% premium surcharge — worth modelling both ways in the CMHC insurance calculator before choosing.
What the payment does not include
- Land transfer tax, due in cash at closing and charged twice in Toronto, where a municipal tax stacks on the provincial one. See the land transfer tax calculator.
- Property tax, set by your municipality and often collected by the lender alongside the payment.
- Condo fees, which lenders count against your qualifying ratios — commonly at 50% of the monthly fee.
- Legal fees, title insurance and the home inspection, all payable at closing from the same savings as the down payment.
Related Calculators
Canadian Mortgage Calculator
Calculate exact monthly payment at your target home price
CMHC Insurance Calculator
Check if your down payment requires CMHC insurance
Land Transfer Tax Calculator
Include LTT in your upfront budget
FHSA Calculator
Boost your down payment with the First Home Savings Account
Down Payment Savings Calculator
Project when you will hit your target down payment
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.
Find your true affordability limit.
Back to the calculator ↑Mortgage Affordability Calculator Canada is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.