Mortgage · Canada
Mortgage affordability.
Find out how much home you can afford. Uses Canadian Gross Debt Service (GDS) and Total Debt Service (TDS) ratios applied to your income, debts, and down payment.
A Canadian mortgage affordability calculator. Enter your gross household income, existing monthly debt payments, down payment and interest rate, and it returns the maximum mortgage and maximum home price your income can support.
It applies the two lender ratios used across Canada: GDS (Gross Debt Service) capped at 32% of gross monthly income, and TDS (Total Debt Service) capped at 40%. Whichever limit binds first sets your maximum.
Inputs
You can afford
Fill the form and press Calculate.
Understanding GDS and TDS
GDS (Gross Debt Service): housing costs (mortgage, property tax, heating, 50% of condo fees) should not exceed 32% of gross monthly income.
TDS (Total Debt Service): housing costs plus all other debt obligations should not exceed 40% of gross monthly income.
This calculator estimates the maximum mortgage and home price your income can support at these standard ratios with a 1% property tax estimate and $100/month heating.
TNAADO Inc. · Toronto
Two ratios decide what a lender will lend
Canadian affordability is not judged on income alone but on two debt-service ratios. GDS sets housing costs (mortgage payment, property tax, heat and half of any condo fee) against gross income. TDS adds every other debt payment on top. Lenders work to conventional limits of roughly 32% and 40%, and the binding one is usually TDS, which is why a car loan can cut the mortgage a household qualifies for by far more than its monthly payment suggests.
The mistake people make. Qualifying at the contract rate. Federally regulated lenders must underwrite at the greater of the contract rate plus two percentage points or the minimum qualifying rate, so the payment being tested is higher than the payment you will actually make. The other error is confusing what a lender will approve with what is affordable: the ratios ignore childcare, tuition, savings and every other cost of an actual life.
Frequently asked questions
How much mortgage can I afford on my salary?
Lenders do not work from a multiple of salary; they work from two debt-service ratios. Housing costs (mortgage payment, property tax, heating and half of any condo fees) must stay within 32% of gross monthly income (GDS). Those housing costs plus every other debt payment must stay within 40% (TDS).
For a household with no other debt, that commonly works out to somewhere between three and a half and four and a half times gross annual income, but the figure moves sharply with interest rates and with any car loan, student loan or credit-card balance you are already carrying.
What is the difference between the GDS and TDS ratio?
GDS counts only the cost of the home: mortgage principal and interest, property tax, heating, and 50% of condo fees. TDS counts all of that plus every other monthly obligation: car payments, student loans, lines of credit, and the minimum payments on your credit cards.
Both must pass. Applicants with significant existing debt are usually limited by TDS, while debt-free applicants are usually limited by GDS.
What is the minimum down payment in Canada?
It is tiered by purchase price. You need 5% on the first $500,000, 10% on any portion between $500,000 and $1,500,000, and 20% on a home priced at $1,500,000 or above. The top threshold was raised from $1,000,000 on 15 December 2024.
So a $700,000 home requires $25,000 on the first $500,000 plus $20,000 on the next $200,000, or $45,000 in total. Any down payment under 20% also triggers CMHC mortgage default insurance, which is added to the mortgage.
Disclaimer
Estimates for educational purposes only. Real approval amounts depend on credit score, employment history, and lender-specific stress-test requirements.