How much house can I afford?
Lenders start from the same federal rules: a stress test on the payment, limits on how much of your income goes to housing and debts, and a minimum down payment that rises with the price. This applies them to your figures and estimates the price they could support. Nothing you enter leaves your browser.
You
The mortgage and the home
Estimate · maximum purchase price
About $612,000
A mortgage of about $548,492, with a payment of roughly $2,975 a month at 4.3%. Income sets the limit here. Above this price, the stress-tested costs would go past the debt service limits.
Estimate based on the information entered and the federal minimums every lender starts from: the stress test, 39% and 44% debt service limits for insured mortgages (many lenders use similar ones for uninsured), the minimum down payment and CMHC premiums. It is not a pre-approval. Lenders also look at credit, employment, the property and their own policies, and some allow more or less. Land transfer tax and closing costs are paid on top of the down payment. For informational purposes only.
How the estimate works
The stress test
The mortgage payment is tested at the greater of your rate plus 2%, or 5.25%. You would pay the actual rate; the test is there to leave room for higher rates at renewal.
The income limits
The stress-tested payment, property tax, heating and half of any condo fees must stay within 39% of gross income, and within 44% once other debt payments are added. These are the limits for insured mortgages, and many lenders use similar ones for uninsured mortgages.
The down payment
The minimum rises with the price: 5% of the first $500,000 and 10% of the rest up to $1.5 million, then 20%. Below 20% down the insurance premium is added to the mortgage, which the income test then has to carry too.
Solving for the price
Because the premium, the minimum down payment and property tax all grow with the price, the calculator tests prices until every rule is just met, and says which one set the limit.
Common questions
- How much house can I afford in Ontario?
- Two things set the answer. Your down payment has to meet the minimum for the price, and your income has to carry the stress-tested payment plus property tax, heating and other debts within the lenders' limits. The price is whichever limit you reach first. Because the minimum down payment, the insurance premium and property tax all rise with the price, the calculator tests prices until every rule is just met.
- What is the mortgage stress test?
- Lenders qualify you at the greater of your contract rate plus 2 percentage points, or 5.25%, even though you will pay the actual rate. It applies to insured and uninsured purchases alike. The idea is to leave room for rates to rise at renewal.
- What are GDS and TDS ratios?
- Gross debt service is the share of your gross income that goes to the stress-tested mortgage payment, property tax, heating and half of any condo fees. Total debt service adds your other debt payments, such as car loans and credit cards. The usual limits for an insured mortgage are 39% and 44%, and many lenders use similar ones for uninsured mortgages.
- Does the down payment include closing costs?
- No. Land transfer tax, legal fees, title insurance, inspections and adjustments are paid separately at closing, and lenders usually want to see about 1.5% of the price set aside for them. In Ontario, first-time buyers can get up to $4,000 of the provincial land transfer tax refunded.
- Is this the same as a pre-approval?
- No. It applies the federal minimum rules to the figures you enter. A pre-approval also looks at your credit, employment and income documents, and the lender's own policies, and it usually holds a rate for a period of time. A broker or lender can give you one.
Related calculators
- What would the payment be on this home?The payment on a purchase, with the minimum down payment and any mortgage insurance premium worked in.
- How much land transfer tax will I pay in Ontario?Ontario and Toronto land transfer tax, with first-time buyer refunds.
- Could we afford to sell and buy our next home?Takes your equity after selling costs and a penalty or port, and estimates the price range it could support.
Rules last reviewed 28 September 2026. An estimate, not a pre-approval: lenders also look at credit, employment and the property. For a pre-approval and a rate hold, book a call with a broker. Add a simplified version to your website.