GDS (Gross Debt Service) = housing costs ÷ income. TDS (Total Debt Service) = GDS plus all other monthly debt payments ÷ income. Standard limits: 39% GDS and 44% TDS. Some lenders stretch to 42% / 46% for strong borrowers.

Why does paying off a credit card raise my buying power?

Because TDS includes credit-card minimum payments. Paying down the balance lowers the minimum, which lowers TDS, which raises your maximum approved price. Credit cards punch way above their weight vs auto or student loans.

Does this include the down payment?

Yes. Your down payment is added to the maximum loan to give the maximum purchase price. Larger down → larger max price (more cash + smaller payment per dollar of price).

How accurate is this vs what a broker will tell you?

Within a few thousand dollars on a clean file. Brokers may add credit-history adjustments, employment-stability factors, and lender overlays that this calculator can't see. Use this for planning; pre-approval gives you the bank's actual number.

Does the calculator account for CMHC?

It uses your nominal price and down payment to get the loan. The CMHC premium is added to the loan separately at closing — it doesn't change your approval ceiling, only your monthly payment.

Why is property tax part of the calculation?

Because GDS includes housing carrying costs, not just the mortgage payment. Higher property tax (cities like Montréal or Toronto) eats into your affordable price. Underestimating tax in this calculator will overstate your buying power.

Affordability · Canada

How much house can you actually qualify for?

Banks don't lend you what you can pay — they lend you what their ratios approve. This calculator reverse-engineers the maximum home price from your income, debts, and down payment, applying the OSFI B-20 stress test the way every federally regulated lender does.

Assumptions

Gross household income (annual)

Cash available for down payment

Mortgage rate

Amortization (years)

Estimated property tax (annual)

For Quebec, ~1.0% of price is a reasonable default.Estimated heating (annual)

Other monthly debt

Loan / credit-card / line-of-credit minimums.

Results

Maximum home price

$560,734

Maximum loan$480,734

Max stressed payment$3,442/mo

Qualifying rate7.3%

Binding constraintGDS / ABD

GDS at max39.0%

TDS at max39.0%

Foncier the whole deal

This number is one of seventy.

Cap rate is a start. The full Foncier analyzer adds DSCR, IRR, ten-year cashflow projections, scenarios, side-by-side compare, and live community rent comps — for free, on your first three deals.

Create a free account See plans

How this is calculated

We solve for the largest purchase price where stressed P&I + tax + heat + 50% condo fees ≤ GDS limit × income, and stressed P&I + tax + heat + condo + other debt ≤ TDS limit × income. Whichever ratio binds first sets your ceiling. We use the OSFI qualifying rate (max of contract+2% or 5.25%).

Worked examples

How income and debt change the affordability ceiling.

$120k income · clean credit

Max price ~$610k

$120,000 household income, no other debt. With a $80k down payment and a 5.25% rate (qualifying at 7.25%), the GDS limit binds first. Maximum home price lands around $610,000.

Income$120k

Down$80k

Other debt$0

BindingGDS

$120k income · $800/mo other debt

Max price ~$510k

Same income and down payment, but $800/mo in car + credit-card payments. TDS now binds first. Maximum home price drops to ~$510,000 — that's $100k of buying power lost to existing debt.

Income$120k

Down$80k

Other debt$800/mo

BindingTDS

Affordability questions

About mortgage affordability in Canada.

Federally regulated lenders are required by OSFI B-20 to approve you at the higher of your contract rate + 2% or the 5.25% Minimum Qualifying Rate. The calculator uses the same rate so the answer matches what the bank will tell you.

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