Free tool · includes the stress test

How Much Can You Afford?

This calculator applies the same math a lender does: the federal stress test (the higher of your rate + 2% or 5.25%) and the GDS/TDS debt-service limits. You pay your real rate — but this is the number that decides your maximum.

How lenders decide your maximum

  • Stress test: qualification uses the higher of your contract rate + 2% or the 5.25% floor — at mid-2026 rates around 3.94%, that means qualifying near 5.94%.
  • GDS ≤ ~39%: mortgage payment + property tax + $125/mo heat must fit inside 39% of gross income.
  • TDS ≤ ~44%: all of the above plus car payments, loans and credit minimums within 44%.
  • Down payment tiers: 5% on the first $500k, 10% from $500k–$1.5M; 20%+ required at $1.5M and up (insured cap). Under 20% down adds a CMHC premium but often gets a sharper rate.

Frequently asked questions

What is the mortgage stress test in Canada?

Lenders must qualify you at the higher of your contract rate plus 2 percentage points or the 5.25% minimum qualifying rate floor. You pay your actual rate — the stress test only limits how much you can borrow, as a buffer against rates rising.

What are GDS and TDS ratios?

Gross Debt Service (GDS) is your housing costs — mortgage payment, property tax, heat, and half of condo fees — as a share of gross income, capped around 39% for insured mortgages. Total Debt Service (TDS) adds all other debt payments and is capped around 44%.

How much income do I need for a $1,000,000 home in the GTA?

As a rough illustration at mid-2026 rates with 20% down, an $800,000 mortgage stress-tested near 6% requires roughly $170,000 to $185,000 of gross household income, depending on property taxes and other debts. Use the calculator above for your own numbers.

What is the minimum down payment in Canada?

5% on the first $500,000 of the price and 10% on the portion between $500,000 and $1.5 million. Homes at $1.5 million and above require at least 20% down because they cannot be default-insured.

Related: Payment calculator · Land transfer tax · First-time buyer GTA playbook

Rates shown are ranges observed in the Canadian market for illustration only, on approved credit (OAC), subject to change without notice, as of 2026-07-03. Where a specific rate is advertised for a fixed-amount mortgage, the APR equals the rate unless non-interest charges apply. Not an offer of credit.