How Much Mortgage Can You Actually Qualify For in Canada?
The most complete Canadian mortgage qualifier — stress test, CMHC, GDS/TDS ratios, and land transfer tax by province.
Frequently Asked Questions
Who This Calculator Is For
First-Time Home Buyers
Understand exactly what you qualify for before talking to a realtor. Know your numbers — and your land transfer tax rebate — before you start shopping.
Renewers Stress-Testing Rates
Your renewal is coming and rates are higher. Run your numbers at today's rate to see how your affordability has changed and whether you need to adjust your purchase price expectations.
Real Estate Investors
Model rental income scenarios. Add rental income to the co-applicant field and see how it affects qualification for your next investment property.
Couples Combining Incomes
See the exact dollar impact of combining incomes. Run it solo, then add your partner's income to see the qualification gap you bridge together.
Pre-Construction Buyers
Pre-con closings are 2–4 years out. Stress-test your qualification at a higher rate to ensure you'll still qualify when the unit is ready to close.
How Canadian Mortgage Qualification Works
Qualifying for a mortgage in Canada involves more than just having a good credit score. Canadian lenders — and the federal stress test — require your debt service ratios to stay within strict limits, your down payment to meet minimums based on purchase price, and your numbers to survive a rate increase you may never actually experience. Here's how it all works.
The Two Ratios That Determine Everything
Every federally regulated lender in Canada uses two ratios to assess your affordability:
- Gross Debt Service (GDS) Ratio: The percentage of your gross monthly income used to cover housing costs — mortgage payment (stress-tested), property taxes, heating, and 50% of condo fees. Must be ≤ 39%.
- Total Debt Service (TDS) Ratio: GDS plus all other monthly debt obligations (car payments, student loans, credit card minimums, lines of credit). Must be ≤ 44%.
Both ratios are calculated using the stress-tested rate, not your actual contract rate. This means even if you lock in at 5.49%, the bank qualifies you as if you were paying 7.49% (or 5.25% at minimum). Our calculator runs both.
The Canadian Mortgage Stress Test Explained
Introduced by OSFI (the Office of the Superintendent of Financial Institutions), the mortgage stress test requires lenders to qualify borrowers at the higher of: their contract rate + 2%, or 5.25%.
| Contract Rate | Stress Test Rate | Impact on Qualification |
|---|---|---|
| 3.00% | 5.25% (floor) | Qualifies for significantly less than contract rate suggests |
| 4.00% | 6.00% | Monthly payment at qual rate ~20% higher than actual |
| 5.49% | 7.49% | Monthly payment at qual rate ~15% higher than actual |
CMHC Mortgage Insurance: What You Need to Know
Mortgage default insurance — commonly called CMHC insurance after its largest provider — is mandatory when your down payment is less than 20% of the purchase price. The premium is calculated as a percentage of your insured mortgage amount and added directly to your mortgage balance.
| Down Payment | LTV Ratio | CMHC Premium (% of mortgage) |
|---|---|---|
| 5% – 9.99% | 90.01% – 95% | 4.00% |
| 10% – 14.99% | 85.01% – 90% | 3.10% |
| 15% – 19.99% | 80.01% – 85% | 2.80% |
| 20%+ | ≤ 80% | No insurance required |
Canada Minimum Down Payment Rules (2026)
The minimum down payment in Canada is tiered based on the purchase price of the home:
| Purchase Price | Minimum Down Payment | CMHC Required? |
|---|---|---|
| Under $500,000 | 5% of purchase price | Yes |
| $500,000 – $999,999 | 5% on first $500K + 10% on remainder | Yes |
| $1,000,000+ | 20% minimum | No (ineligible) |
For example, on an $800,000 home: the minimum down payment is $25,000 (5% of $500,000) + $30,000 (10% of $300,000) = $55,000.
How to Use This Mortgage Qualifier
Enter Your Gross Annual Income
Use your pre-tax income. Lenders accept employment income, self-employment income (2-year average), rental income (typically 50–80%), pension, and some investment income.
Add Co-Applicant Income (if applicable)
Adding a spouse or partner combines your qualifying income, often the single biggest lever to increase your maximum mortgage.
Enter Your Down Payment Savings
Include all sources: RRSP Home Buyers' Plan (up to $35,000 per applicant), FHSA funds, gifted down payments from immediate family, and personal savings.
List All Monthly Debt Obligations
Include minimum credit card payments, car loan payments, student loan payments, personal line of credit minimums, and any spousal/child support obligations.
Set Your Rate and Amortization
Use a current rate quote from your bank or broker. Remember: lenders will qualify you at rate + 2%. Try 5-year fixed vs. variable to compare scenarios.
Enter Housing Costs and Select Province
Property taxes vary widely by municipality. CMHC uses $150/month for heating. Condo fees use 50% in GDS calculations. Province determines land transfer tax.