How much home can you afford?
Enter your household income, monthly debts, down payment and property costs to estimate the highest price a lender is likely to approve. It uses CMHC's debt service limits (39% of income for housing, 44% for all debts) and qualifies you at the greater of your rate plus 2% or 5.25%, as lenders do. Then see what that price buys on the London map.
A lender is likely to approve up toEstimate
$619,000
Housing costs set the ceiling: at this price they reach 39% of your income, the GDS limit.
Add property tax and heating for a realistic answer. Without them this figure is too high.
- Down payment
- $60,000
- Mortgage, CMHC premium included
- $581,360
- CMHC insurance premium
- $22,360
- Your payment at 4.5%, monthly
- $3,218
- Stress-test rate the lender checks
- 6.5%
- Payment at the stress-test rate
- $3,894
Good to know
The rules behind the numbers
Estimates for planning, not advice, a quote or an approval. Your lender, your lawyer and CMHC or your insurer confirm the final figures. Rates and rules change.
Housing costs in the test are your mortgage payment, property tax, heating and, for a condo, half the condo fee. Use the figures on the listings you are considering.
This is an estimate, not an approval. A lender also looks at your credit (CMHC's minimum score is 600), your job history and the property.
The top of your range is not a target. Leave room for repairs and life. Then open What your budget buys with your number.
Questions buyers ask us
What are GDS and TDS?
Gross debt service (GDS) is your housing costs as a share of gross income; the limit for an insured mortgage is 39%. Total debt service (TDS) adds your other debts, such as car loans and credit cards; the limit is 44%.
Why do I qualify at a higher rate than I will pay?
That is the mortgage stress test. Lenders must check you could still afford the payment at the greater of your contract rate plus 2% or 5.25%.
Can I use my RRSP or FHSA for the down payment?
Yes, if you qualify. The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP, and a First Home Savings Account takes up to $8,000 a year to a lifetime $40,000. Here is how both work for first-time buyers.
Do condo fees count against what I can afford?
Yes. For a condo, half the monthly condo fee counts as a housing cost, alongside your mortgage payment, property tax and heating, when lenders apply the 39% limit. Every condo listing shows its monthly fee.
Numbers are the start. We can help with the rest.
Talk to us before you shop. We can point you to local mortgage professionals, explain what a home like the one you want costs to run, and set up alerts in your price range.