Discover the maximum home price you can afford based on your income, debts, and down payment - applying the Canadian mortgage stress test (GDS/TDS).
How does the calculation work?
GDS
Gross Debt Service ratio
Housing costs (mortgage + taxes + heating) ÷ gross income. Limit: 39%
TDS
Total Debt Service ratio
GDS + all your other monthly debts ÷ gross income. Limit: 44%
Stress test
The calculation uses whichever is higher: contract rate + 2% or 5.25%. This simulates a rate increase to ensure you can still afford payments.
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Estimated Maximum Purchase Price
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Estimated monthly payment:
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Qualification Metrics
| Metric | Your Result | Limit |
|---|---|---|
| Stress test rate | - | max(rate + 2%, 5.25%) |
| GDS ratio (housing costs) | - | ≤ 39% |
| TDS ratio (total debt) | - | ≤ 44% |
| Monthly property tax (est.) | - | ~1% of value/year |
| Monthly PITH (principal + interest + taxes + heating) | - | Includes $150/month heating |
| Gross monthly income | - |
* Calculation based on 2024 CMHC rules. Stress test rate = max(contract rate + 2%, 5.25%). GDS ≤ 39% and TDS ≤ 44% of gross income. Heating estimated at $150/month. Property tax estimated at roughly 1% of the property's value per year, since the exact purchase price is not yet known. Consult a mortgage broker for an official pre-approval.
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