Mortgage Affordability Calculator Canada

Q: How much mortgage can I afford in Canada?

Most lenders follow the Gross Debt Service guideline of around 39% of gross monthly income.

Q: What income is required for a $500,000 mortgage in Canada?

Many households need roughly $100,000 to $120,000 annual income depending on interest rates and debt levels.

Q: What is the minimum down payment in Canada?

The minimum down payment is 5% for homes under $500,000. Homes between $500,000 and $1 million require 5% on the first $500,000 and 10% on the remaining amount. Homes above $1 million require at least 20%.

Use this free Canadian mortgage affordability calculator to estimate how much home you can afford based on your income, debt payments, interest rate, amortization period, and down payment.

Annual Household Income ($)

Down Payment ($)

Contract Interest Rate (%) Stress test will use rate + 2% or 5.25%, whichever is higher

Amortization (Years)

Monthly Debt Payments ($) Car loans, student loans, credit card minimums

Property Tax (Monthly $) Estimate ~0.8–1.2% of home value per year

Monthly Heating Cost ($) Lenders use ~$150/mo as standard estimate

Condo Fees (Monthly $)

50% of condo fees are included in GDS by lenders

How the Mortgage Affordability Calculator Works

Mortgage lenders in Canada typically use affordability guidelines to determine how much home buyers can borrow. A common rule is that your housing costs should not exceed roughly 39% of your gross monthly income. This includes your mortgage payment, property taxes, and heating costs.

Our calculator estimates the maximum mortgage you may qualify for based on this guideline and subtracts any existing debt obligations such as car loans, student loans, or credit card payments.

Keep in mind that lenders may also apply the Canadian mortgage stress test, which requires borrowers to qualify at a higher interest rate than the one offered by their lender.

Canada's Tiered Down Payment Requirements

Visualizing the 2026 Canadian mortgage down payment rules.

*Example: A $700k home requires $25k (5% of 500k) + $20k (10% of 200k) = $45k total.

Canadian Mortgage Qualification Rules

Gross Debt Service (GDS)

Measures housing costs against your income.

Mortgage principal & interest
Property taxes & Heating
50% of condo fees

Limit: 39%

Total Debt Service (TDS)

Includes housing costs plus all other debts.

Car loans & Student loans
Credit card minimums
Line of credit payments

Limit: 44%

Frequently Asked Questions

How much mortgage can I afford in Canada?

Most lenders follow the Gross Debt Service (GDS) guideline, which suggests that housing costs should not exceed about 39% of your gross monthly income. The exact amount you can borrow also depends on your credit score, debts, down payment, and interest rates.

What income is required for a $500,000 mortgage in Canada?

The income required depends on the interest rate, amortization period, down payment, and existing debts. As a rough estimate, households often need an income between $100,000 and $120,000 to comfortably afford a $500,000 mortgage, assuming limited additional debt.

How does the mortgage stress test affect affordability?

Canadian borrowers must qualify using the mortgage stress test, which requires lenders to assess affordability at the greater of the Bank of Canada's benchmark rate or the contract rate plus 2%. This reduces the maximum mortgage amount many borrowers qualify for.

How much down payment do I need in Canada?

The minimum down payment depends on the purchase price of the home. For properties under $500,000 the minimum is 5%, while homes between $500,000 and $1 million require 5% on the first $500,000 and 10% on the remaining amount. Homes above $1 million require at least 20%.

Disclaimer

This calculator provides estimates only and should not be considered financial advice. Actual mortgage qualification depends on several factors including credit score, lender policies, property taxes, and current mortgage rates.