Stress-test checkMinimum down payment
- Target result
- $105,614 usable vs $47,500 required
- Status
- Pass
- Planning note
- Minimum estimate is met.
Mortgage Affordability Calculator Canada
Estimate a practical Canadian max purchase price from income, debts, purchase cash, qualifying-rate stress test, GDS/TDS guideposts, minimum down payment, default insurance, and cash-to-close placeholders.
🇨🇦 Canadian payment conventions
Max purchase price + target check
🔒 Inputs stay local
Canada stress test
Enter income, debts, cash, and a target price
Estimate a max Canadian purchase price using the stress-test qualifying rate, GDS/TDS guideposts, minimum down payment, and default insurance.
Results update locally in your browser. CalcShelf does not put raw mortgage inputs in the URL or browser storage.
No raw inputs are stored or placed in the URL.
Decision page
Stress-test the decision, not just the payment
Use the checks below to see whether the constraint is cash, down payment, housing cost, or total debt load.
Educational estimate only — not financial, legal, tax, mortgage, or lending advice. Confirm current qualifying-rate rules, GDS/TDS treatment, insurer rules, taxes, closing costs, rebates, and lender-specific underwriting with qualified professionals.
What this means
The target price is a near limit under the entered cash, down-payment, GDS, and TDS guideposts. The estimated max price under the same assumptions is $742,700.
Lender-call memo
Copy or print a local-only summary for a lender call, household budget conversation, or conservative second pass.
| Stress-test check | Target result | Status | Planning note |
|---|---|---|---|
| Minimum down payment | $105,614 usable vs $47,500 required | Pass | Minimum estimate is met. |
| Cash needed at closing | $66,886 minimum cash estimate | Pass | Fits the entered purchase cash. |
| GDS | 37.9% / 39% guidepost | Pass | $147 monthly room against the GDS guidepost. |
| TDS | 42.7% / 44% guidepost | Pass | $185 monthly room after other debts. |
Stress-test checkCash needed at closing
- Target result
- $66,886 minimum cash estimate
- Status
- Pass
- Planning note
- Fits the entered purchase cash.
Stress-test checkGDS
- Target result
- 37.9% / 39% guidepost
- Status
- Pass
- Planning note
- $147 monthly room against the GDS guidepost.
Stress-test checkTDS
- Target result
- 42.7% / 44% guidepost
- Status
- Pass
- Planning note
- $185 monthly room after other debts.
| Target detail | Estimate | Why it matters |
|---|---|---|
| Qualifying rate | 7.3% | Uses the higher of contract rate plus the editable add-on or the editable minimum qualifying-rate floor. |
| Contract payment | $3,805 | Monthly-equivalent mortgage payment at the contract rate. |
| Stress-test payment | $4,572 | Monthly-equivalent mortgage payment used for GDS/TDS debt-service checks. |
| Qualifying housing cost | $5,215 | Stress payment plus property tax, heat, and 50% condo/strata placeholder. |
| Default insurance | $19,201 (3.1%) | Below-20% down insured files can add a financed premium. |
| Premium tax | $1,536 (8%) | Some provinces charge sales tax on the default-insurance premium and it is usually cash at closing. |
| Land-transfer tax | $6,975 after $4,000 estimated rebate | Included in cash-to-close so max-price math does not ignore a major Canadian closing cost. |
Target detailQualifying rate
- Estimate
- 7.3%
- Why it matters
- Uses the higher of contract rate plus the editable add-on or the editable minimum qualifying-rate floor.
Target detailContract payment
- Estimate
- $3,805
- Why it matters
- Monthly-equivalent mortgage payment at the contract rate.
Target detailStress-test payment
- Estimate
- $4,572
- Why it matters
- Monthly-equivalent mortgage payment used for GDS/TDS debt-service checks.
Target detailQualifying housing cost
- Estimate
- $5,215
- Why it matters
- Stress payment plus property tax, heat, and 50% condo/strata placeholder.
Target detailDefault insurance
- Estimate
- $19,201 (3.1%)
- Why it matters
- Below-20% down insured files can add a financed premium.
Target detailPremium tax
- Estimate
- $1,536 (8%)
- Why it matters
- Some provinces charge sales tax on the default-insurance premium and it is usually cash at closing.
Target detailLand-transfer tax
- Estimate
- $6,975 after $4,000 estimated rebate
- Why it matters
- Included in cash-to-close so max-price math does not ignore a major Canadian closing cost.
| Max-price readout | Estimate | Planning note |
|---|---|---|
| Estimated max purchase price | $742,700 | Highest price found under entered cash, GDS, and TDS guideposts. |
| Cash-only ceiling | $1,141,800 | Highest price where entered cash can cover minimum down payment plus closing placeholders, before income checks. |
| Mortgage before insurance | $637,751 | Base mortgage amount before any default-insurance premium is financed. |
| Max-price GDS / TDS | 39% / 43.7% | GDS / TDS at the estimated max price. |
Max-price readoutEstimated max purchase price
- Estimate
- $742,700
- Planning note
- Highest price found under entered cash, GDS, and TDS guideposts.
Max-price readoutCash-only ceiling
- Estimate
- $1,141,800
- Planning note
- Highest price where entered cash can cover minimum down payment plus closing placeholders, before income checks.
Max-price readoutMortgage before insurance
- Estimate
- $637,751
- Planning note
- Base mortgage amount before any default-insurance premium is financed.
Max-price readoutMax-price GDS / TDS
- Estimate
- 39% / 43.7%
- Planning note
- GDS / TDS at the estimated max price.
| Rate scenario | Max purchase price | Target GDS | Target TDS |
|---|---|---|---|
| 4.3% | $795,100 | 35.1% | 39.8% |
| 4.8% | $768,000 | 36.5% | 41.2% |
| 5.3% | $742,700 | 37.9% | 42.7% |
| 5.8% | $718,800 | 39.4% | 44.1% |
| 6.3% | $698,100 | 40.9% | 45.6% |
| 7.3% | $657,100 | 43.9% | 48.6% |
Rate scenario4.3%
- Max purchase price
- $795,100
- Target GDS
- 35.1%
- Target TDS
- 39.8%
Rate scenario4.8%
- Max purchase price
- $768,000
- Target GDS
- 36.5%
- Target TDS
- 41.2%
Rate scenario5.3%
- Max purchase price
- $742,700
- Target GDS
- 37.9%
- Target TDS
- 42.7%
Rate scenario5.8%
- Max purchase price
- $718,800
- Target GDS
- 39.4%
- Target TDS
- 44.1%
Rate scenario6.3%
- Max purchase price
- $698,100
- Target GDS
- 40.9%
- Target TDS
- 45.6%
Rate scenario7.3%
- Max purchase price
- $657,100
- Target GDS
- 43.9%
- Target TDS
- 48.6%
| Purchase cash | Estimated max price | Change from current max |
|---|---|---|
| $100,000 | $720,400 | -$22,300 |
| $125,000 | $742,700 | $0 |
| $150,000 | $766,700 | $24,000 |
| $175,000 | $788,900 | $46,200 |
| $225,000 | $850,200 | $107,500 |
Purchase cash$100,000
- Estimated max price
- $720,400
- Change from current max
- -$22,300
Purchase cash$125,000
- Estimated max price
- $742,700
- Change from current max
- $0
Purchase cash$150,000
- Estimated max price
- $766,700
- Change from current max
- $24,000
Purchase cash$175,000
- Estimated max price
- $788,900
- Change from current max
- $46,200
Purchase cash$225,000
- Estimated max price
- $850,200
- Change from current max
- $107,500
Verify before you commit
- The qualifying rate: commonly the greater of contract rate + 2% or the minimum qualifying-rate floor, but lender/regulator rules can change.
- The lender’s actual GDS/TDS limits, income treatment, debt treatment, condo-fee treatment, and amortization policy.
- Minimum down payment, default-insurance eligibility, premium, and any insured/insurable/uninsured rate differences.
- Provincial/municipal transfer tax, first-time-buyer rebates, legal adjustments, inspection, moving, lender fees, and emergency reserves.
What the Canadian mortgage stress test means
The stress test is a qualification-style check that asks whether the mortgage still fits at a higher qualifying rate, not just at the contract rate. This calculator defaults to the common planning rule of the greater of your contract rate plus 2 percentage points or a 5.25% minimum qualifying-rate floor, and keeps both assumptions editable so you can verify the current rule.
GDS vs TDS
GDS compares qualifying housing cost to gross monthly income. In this worksheet, qualifying housing cost is the stress-test monthly-equivalent mortgage payment plus estimated property tax, heating, and 50% of condo/strata fees.
TDS adds your other monthly debt payments to that housing cost. The default guideposts are 39% GDS and 44% TDS, labelled as conservative estimates rather than lender approval rules.
Minimum down payment and default insurance
The down-payment check uses Canadian minimum down-payment tiers: 5% up to $500,000, then 10% on the portion from $500,000 to $1.5 million, and 20% at $1.5 million or more. If the down payment is below 20% and the purchase price is under $1.5 million, the calculator estimates a financed default-insurance premium.
Formula and assumptions
The mortgage payment uses Canadian fixed-payment convention: the nominal annual mortgage rate is converted using semi-annual compounding, then adapted to the selected payment frequency.
Period rate = (1 + annual rate / 2)2 / payments per year − 1. GDS = qualifying housing cost ÷ gross income. TDS = (qualifying housing cost + monthly debt payments) ÷ gross income.
For max-price estimates, CalcShelf derives an implied property-tax rate from the annual property-tax estimate and the purchase price you are testing. Cash-needed-at-closing is a planning placeholder, not a quote.
Why lenders may qualify you differently
A real lender or broker may use different income treatment, debt calculations, GDS/TDS limits, insurer rules, appraisal assumptions, amortization limits, rate policies, property-tax estimates, closing-cost requirements, and provincial or municipal tax treatment.
- Verify the current qualifying-rate rule and lender-specific GDS/TDS thresholds.
- Confirm default-insurance eligibility, premium, and amortization limits.
- Check provincial/municipal transfer taxes, rebates, legal adjustments, and emergency-reserve expectations.
- Ask whether the result changes for insured, insurable, uninsured, variable-rate, or fixed-rate approvals.
Important disclaimer
This is an educational planning calculator, not mortgage approval, financial advice, legal advice, or tax advice. Inputs and results stay local in your browser and are not stored in the URL.
Get a better answer from the Mortgage Affordability Calculator Canada
- Start with the example values to see how the tool behaves.
- Swap in your own numbers, even if they are rough first-pass estimates.
- Change one input at a time so you can see what actually moves the result.
What the result means
The result is a home-budget estimate, not a lender promise. It helps you see the monthly payment, cash pressure, and interest tradeoff before you shop or commit.
How to use it
Compare a comfortable case with a stretched case. The gap tells you how much room you have if the rate, taxes, insurance, or closing costs move.
What can change it
Principal and interest are only part of home cost. Taxes, insurance, HOA or condo fees, repairs, mortgage insurance, and closing costs can change the real answer fast.
Good for
Stress-test a target Canadian home price.
Check next
Compare your result with Canada Mortgage Payment Calculator, Canadian Mortgage Amortization Calculator, Canada Mortgage Renewal & Refinance Calculator when you want more context.
Best habit
Run a conservative case and an optimistic case. The gap between them is often more useful than a single answer.
Common uses
- Stress-test a target Canadian home price.
- Estimate a max price from income, debt, and purchase cash.
- Check GDS, TDS, default insurance, and cash-to-close constraints.
Common questions
Is the Mortgage Affordability Calculator Canada private?
Yes. CalcShelf calculators run without an account, do not save calculator entries, and do not put raw inputs into shareable URLs or analytics events.
How accurate is the Mortgage Affordability Calculator Canada?
It is a home-finance estimate, not a lender quote. Rates, taxes, insurance, fees, insurance premiums, and underwriting rules can change the real payment or approval result.
What should I check after using the Mortgage Affordability Calculator Canada?
Verify rate, fees, taxes, insurance, lender rules, cash to close, and any mortgage insurance before acting.
Which calculator should I try next?
Use the related calculators below to cross-check the same decision from another angle before you act.
Method behind the estimate
Mortgage calculators use standard amortization and payment math with user-entered rates, terms, taxes, insurance, and fee assumptions.
Why the detail matters
Results are estimates. Lender rules, payment frequency, penalties, taxes, mortgage insurance, closing costs, and local law can change the real answer.
Privacy guardrail
Your calculator values are for you. CalcShelf does not require an account, save calculator entries, put your numbers into shareable URLs, or use raw inputs as analytics events.
Copy or print safely
Use any copy, print, or worksheet controls as local handoff tools for your own notes, supplier calls, lender questions, or implementation checklist. They are there to help you explain the result to a human.
Before acting
Treat the result as a decision draft, not a verdict. Recheck the source numbers, run a downside case, and verify the real-world rule, quote, label, or spec that controls the final answer.
Last reviewed: May 11, 2026. See methodology and editorial policy for formulas, assumptions, rounding, review approach, and limitations. For borrowing decisions, confirm lender rules, rates, taxes, fees, and legal requirements.