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Affordability simulator

How much mortgage can you actually afford in Canada?

A live A/B simulator using the OSFI qualifying rate, GDS/TDS ceilings, and the CMHC 50%-of-condo-fees rule. Move any slider and both scenarios recompute.

By the Canadian Mortgage Compass Editorial DeskEditorial policy
On this page
  1. 01Live A/B simulator
  2. 02The math, in plain English
  3. 03Why the stress test changes everything
  4. 04GDS and TDS ceilings

Start here · Canada

Turn this simulator into a real pre-approval file.

Numbers show what you could carry. A curated file shows underwriters why they should say yes — income shape, down payment source, and the debts we clean up first.

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Live A/B simulator

Scenario A is your baseline. Scenario B is the "what if?" — change down payment, amortization, debt, or income.

Scenario AQualifying rate 7.04%
$424,000
Max property price
$3,085
Monthly payment
$2,582
P&I portion
$503
Tax + heat est.
GDS 39.0% / 39%99.9289167236284
TDS 43.4% / 44%98.62120489498643
Scenario BQualifying rate 7.04%
$470,000
Max property price
$3,080
Monthly payment
$2,538
P&I portion
$542
Tax + heat est.
GDS 38.9% / 39%99.75814228905078
TDS 43.3% / 44%98.46983664615624

Delta — what scenario B changes

Max price
$470,000
+$46,000 vs A
Monthly payment
$3,080
$5 vs A
GDS
38.9%
0.1% vs A
TDS
43.3%
0.1% vs A

The math, in plain English

Affordability isn't your bank balance. It's three ceilings, each computed independently. The lowest one is what you actually qualify for.

  1. GDS (Gross Debt Service) — housing costs (P&I + property tax + heat + 50% condo fees) can't exceed ~39% of your gross monthly income.
  2. TDS (Total Debt Service) — housing + all other minimum debt payments can't exceed ~44%.
  3. Stress test — you must qualify at the higher of contract rate + 2% or 5.25% (OSFI minimum qualifying rate).

Why the stress test changes everything

Even if your real payment is at a 5.04% contract rate, OSFI Guideline B-20 makes the bank qualify you at 7.04%. That shrinks the maximum mortgage by roughly 18–20%.

GDS and TDS ceilings

For an insured mortgage (under 20% down), most lenders cap GDS around 39% and TDS around 44%. Above 20% down, those ceilings can flex slightly, and B-lenders may go higher with rate and fee adjustments.

Good to know

Estimates use a 1% annual property-tax assumption, $150/mo heat, and 50% of condo fees on the debt ratio. Actual lender numbers vary with your location and insurer.

Cite this page

Publisher: mortgagepreapproval.ca

URL: https://mortgagepreapproval.ca/how-much-mortgage-can-i-afford-canada

mortgagepreapproval.ca. "Affordability simulator." https://mortgagepreapproval.ca/how-much-mortgage-can-i-afford-canada

Written and reviewed by the Canadian Mortgage Compass Editorial Desk. This page is general information for Canadian readers and is not mortgage, legal, tax, or financial advice, and not an offer of credit. Rules, rates, and lender policies change; confirm your own situation with a licensed mortgage professional in your province. Editorial policy · Corrections