How Much Mortgage Can You Qualify For?

Before you start shopping for a home, it helps to know your ceiling. This calculator uses Canada’s mortgage stress test rules to estimate the maximum mortgage you’d qualify for based on your income, debts, and down payment.

What Is the Mortgage Stress Test?

Since 2018, all Canadian lenders are required to qualify borrowers at the higher of: your contract rate plus 2%, or a regulatory floor of 5.25%. This means even if you negotiate a 4.5% mortgage rate, your lender verifies you can afford payments at 6.5% — protecting you if rates rise at renewal.

Key Ratios Lenders Look At

Gross Debt Service (GDS) Ratio — Your housing costs (mortgage payment, property tax, heat, and 50% of condo fees) should not exceed 39% of your gross monthly income.

Total Debt Service (TDS) Ratio — All debt payments combined — housing plus car loans, credit cards, student loans, and other obligations — should not exceed 44% of gross monthly income.

Factors That Affect Your Maximum Mortgage

What the Calculator Shows You

Enter your income, debts, and down payment to see an estimated maximum purchase price and mortgage amount. This is a useful starting point — a mortgage broker can run a more precise assessment that accounts for your full financial picture and specific lender guidelines.

Get pre-approved today and shop with confidence. Our Guelph mortgage team will find your best rate across 50+ lenders.