How much can I borrow on a $100,000 salary in Canada?

At a 4.99% contract rate (6.99% qualifying rate), a single earner with $100,000 gross income, a 20% down payment, typical property tax and heating costs, and no other debt qualifies for a maximum purchase price of approximately $435,000. The binding constraint is the Gross Debt Service ratio of 39% computed at the stress-tested rate.

What are the GDS and TDS ratios?

The Gross Debt Service ratio is principal, interest, property tax, heat, and 50% of condo fees as a percentage of gross monthly income. The limit is 39% for most insured mortgages. The Total Debt Service ratio is GDS plus all other monthly debt payments as a percentage of gross monthly income, limited to 44%. Both ratios are calculated at the qualifying (stress-tested) rate, not the contract rate.

What is the mortgage stress test?

The stress test requires a borrower at a federally regulated Canadian lender to qualify at the higher of the contract rate plus two percentage points and the 5.25% floor rate. The stress-tested rate determines how much can be borrowed. The actual payment is calculated at the lower contract rate. OSFI Guideline B-20 makes the stress test mandatory at every federally regulated bank and credit union.

What is the minimum down payment in Canada?

5% on the first $500,000 of purchase price, 10% on the portion between $500,000 and $1,499,999, and 20% on any home priced $1,500,000 or more. Any down payment below 20% triggers mandatory CMHC, Sagen, or Canada Guaranty default insurance, which adds 2.80% to 4.00% to the mortgage amount.

Does credit score affect affordability?

Credit score gates access and pricing but does not enter the GDS or TDS ratio math. A minimum credit score of 680 is typical for the best insured mortgage rates. Scores between 600 and 680 may still qualify but at higher rates or with B-lender financing. Scores below 600 typically require private lending with larger down payment and higher rate.

Can I buy a home with a co-signer in Canada?

Yes. A co-signer's income is added to the application and improves the GDS and TDS ratios. The co-signer is fully liable for the mortgage. Most major banks allow a parent, spouse, or sibling as co-signer. The co-signer's existing debts also count against the combined TDS, which can offset the income benefit.

How much do closing costs add?

Budget 1.5% to 4% of purchase price for closing costs. The largest item is land transfer tax, which ranges from 0.5% to 2% of price depending on province and municipality. Other items include legal fees of $1,500 to $2,500, title insurance of approximately $350, home inspection of $500 to $800, and utility and tax adjustments at closing. Alberta, Saskatchewan, and the territories have no provincial land transfer tax, which reduces closing costs by several thousand dollars.

Are all mortgage types subject to the stress test?

Uninsured mortgages at federally regulated lenders have been subject to the stress test since January 2018. Insured mortgages have been subject to it since 2016. Credit unions under provincial jurisdiction and private lenders are not federally regulated and set their own qualification rules. Switching at renewal to a different federally regulated lender currently does not require a fresh stress test as of the 2023 rule change, though the receiving lender may apply its own overlay.

What is a qualifying rate?

The qualifying rate, also called the stress-tested rate or benchmark rate, is the interest rate used to compute GDS and TDS ratios for the purpose of qualification. It is the greater of the contract rate plus two percentage points and the 5.25% floor set by OSFI. The qualifying rate is higher than the actual rate to build in room for future rate increases at renewal.

Does property tax affect my maximum mortgage?

Yes, directly. Annual property tax is divided by 12 and subtracted from the 39% GDS allowance before computing the maximum mortgage payment. For a $600,000 Toronto home at approximately 0.7% mill rate, annual property tax is roughly $4,200, or $350 per month. That amount reduces the maximum mortgage payment by $350, which reduces the maximum mortgage by approximately $55,000 at a 6.99% qualifying rate over 25 years.

Do all Canadian lenders apply the 39% and 44% limits?

Federally regulated lenders apply 39% GDS and 44% TDS as the standard ceiling. Some extend GDS to 42% and TDS to 44% for strong applicants. Provincial credit unions are not federally regulated and commonly allow up to 44% GDS and 50% TDS with a rate or fee premium. Private lenders lend on equity rather than ratios, which allows TDS up to 60% at a higher rate and larger fees.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is a casual estimate based on verbal information. It carries no weight and amounts to an informal budget conversation. Pre-approval is a formal underwrite with documentation, a rate hold of 90 to 120 days, and a maximum approval amount. Neither is a guarantee of final approval, which requires property appraisal and final underwriting after an offer is accepted.

Canadian Mortgage Affordability Calculator

Calculate the maximum home price you can afford in Canada at the stress-tested rate using CMHC's GDS ≤ 39% and TDS ≤ 44% limits.

Reviewed by Canadian Money Help Editorial Updated April 22, 2026 Source CRA 2026

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A mortgage affordability calculator works backward from gross household income, available down payment, property tax, heat, and monthly debt obligations to the maximum home price a Canadian lender will approve. The calculator above applies the Canada Mortgage and Housing Corporation (CMHC) ratio limits and the Office of the Superintendent of Financial Institutions (OSFI) stress test in Guideline B-20 to produce both the maximum eligible mortgage and the actual payment at the contract rate.

Quick answer

A dual-income household with $140,000 gross earnings, a $70,000 down payment, typical Ontario property tax and heating costs, and no monthly debt payments qualifies for a maximum purchase of approximately $605,000 at a 4.99% contract rate. The binding constraint in that scenario is the Gross Debt Service ratio of 39%, computed at the stress-tested rate of 6.99%. At the same inputs with $800 per month of car and credit card payments, the maximum purchase price falls to approximately $470,000 because the Total Debt Service ratio of 44% becomes binding.

How Canadian affordability is calculated

The maximum mortgage payment is the lesser of two ratios:

Gross Debt Service (GDS) ratio of 39%. Principal, interest, property tax, and heat, plus 50% of condo fees, cannot exceed 39% of gross monthly income.
Total Debt Service (TDS) ratio of 44%. GDS plus all other monthly debt payments (car loans, credit cards, student loans, lines of credit, alimony) cannot exceed 44% of gross monthly income.

Both ratios are computed at the qualifying rate (also called the stress-tested rate), which is the higher of the contract rate plus two percentage points and the Bank of Canada five-year conventional mortgage rate floor of 5.25%. The qualifying rate determines how much can be borrowed. The actual monthly payment is computed at the contract rate and is always lower. That gap is deliberate: the stress test is designed so the borrower can still service the mortgage if rates rise before renewal.

Down payment rules (2026)

The minimum down payment varies by purchase price:

Homes priced at or below $500,000 require 5% down.
Homes priced between $500,000 and $1,499,999 require 5% on the first $500,000 and 10% on the portion above.
Homes priced $1,500,000 or more require 20% down. These are uninsurable because CMHC, Sagen, and Canada Guaranty do not insure mortgages on properties above that threshold.

Any down payment below 20% triggers mandatory mortgage default insurance. CMHC premiums range from 2.80% of the loan for 15% down to 4.00% for 5% down, with an additional 0.20% surcharge on extended amortizations (25 to 30 years) introduced in 2024. Provincial sales tax applies to the premium in Ontario, Manitoba, Quebec, and Saskatchewan.

What counts as income

Canadian lenders count the following sources toward qualifying income:

Employment income. Base salary, commission averaged over two years, guaranteed overtime and shift premiums. Verified by T4, pay stub, and employment letter.
Self-employment income. Net income from the two most recent T1 returns, confirmed by Notices of Assessment. A gross-up of up to 15% may apply at some lenders to account for legitimate deductions.
Pension income. Canada Pension Plan, Old Age Security, employer pension, and RRIF withdrawals at 100% of the recent amount.
Rental income. Typically 50% of gross rent at most major banks, 80% at some B-lenders, net of property tax, heat, and insurance.
Child Tax Benefit. Included for most conventional lenders if the youngest child is under 11, typically not counted beyond age 11.

What does not count as income

Unverified cash income.
Bonus or commission with less than a two-year track record.
GST/HST credit, tuition credits, social assistance.
One-time severance, inheritance, or settlement payments.

What counts as debt in the TDS calculation

Credit cards. 3% of the balance per month, even when the cardholder pays in full each month.
Unsecured lines of credit. 3% of the current balance per month.
Secured lines of credit (HELOCs). Interest-only payment on the full approved limit at the qualifying rate, not the current balance.
Car loans and leases. The full monthly payment.
Student loans. The scheduled monthly payment, even during a grace period.
Alimony and child support. Court-ordered amounts, verified by the separation agreement.

Why the stress-tested maximum is lower than online estimates

Many online affordability estimators use the contract rate to compute the maximum mortgage. That approach inflates the result by 20% to 30% relative to the rule-compliant figure. Lenders cannot approve a mortgage at the contract-rate maximum because OSFI Guideline B-20 requires qualification at the stress-tested rate at every federally regulated Canadian bank, credit union under federal jurisdiction, and mortgage finance company selling to insured markets. The calculator above uses the stress-tested rate, consistent with how an actual mortgage approval is underwritten.

Representative affordability at common income levels

The figures below assume a 20% down payment, a 25-year amortization, a 4.99% contract rate (6.99% qualifying rate), Ontario property tax at 1% of purchase price, $1,200 annual heat, and no other monthly debt.

Gross household income	Maximum purchase price	Binding ratio
$80,000	$345,000	GDS 39%
$100,000	$435,000	GDS 39%
$120,000	$520,000	GDS 39%
$140,000	$605,000	GDS 39%
$180,000	$780,000	GDS 39%
$220,000	$955,000	GDS 39%

Figures round to the nearest $5,000. Actual approvals depend on credit score, employment tenure, and lender overlays. Adding $500 per month of credit card or car payment typically reduces the maximum purchase price by $50,000 to $70,000 because the TDS ratio becomes binding earlier.

Common reasons a pre-approval is lower than expected

Short employment history. Less than two years at current employer, or a recent change from salary to commission, reduces qualifying income.
Undisclosed HELOC limit. A HELOC with a $100,000 limit adds approximately $580 per month at a 7% qualifying rate, reducing TDS capacity.
Co-signed loan. A co-signed car loan or student loan counts as the full monthly payment on the applicant’s credit file, even when another person pays it.
Rental income discount. Lenders typically use 50% of gross rent, not 100%, which reduces qualifying income for landlord applicants.
Condo fees. 50% of the monthly condo fee enters the GDS ratio, which can eliminate $20,000 to $50,000 of purchase price in higher-fee buildings.

Related calculators

Mortgage Stress Test Calculator. Isolates the stress-test qualification at the higher of contract plus two percentage points and the 5.25% floor.
CMHC Premium Calculator. Includes the 30-year amortization surcharge and the self-employed premium adjustment.
Biweekly Mortgage Payment Calculator. Compares monthly, biweekly, and accelerated biweekly schedules.
Land Transfer Tax Calculator. Province-by-province LTT plus municipal LTT where applicable.
Closing Cost Calculator. LTT, legal, title, inspection, and adjustments for a Canadian home purchase.

Verified against source

Office of the Superintendent of Financial Institutions, Residential Mortgage Underwriting Practices and Procedures (Guideline B-20).
Canada Mortgage and Housing Corporation, Mortgage Loan Insurance for Consumers.
Canada Mortgage and Housing Corporation, Homebuying Step by Step.
Financial Consumer Agency of Canada, Choosing a mortgage that is right for you.

Methodology

The calculator computes the maximum monthly housing budget as the smaller of (39% of gross monthly income minus monthly property tax minus monthly heat) and (44% of gross monthly income minus monthly property tax minus monthly heat minus other monthly debt). The result is used as the maximum mortgage payment at the qualifying rate, which is the greater of the contract rate plus two percentage points and 5.25%. That maximum payment is inverted through the Canadian mortgage formula with semi-annual compounding to produce the maximum mortgage amount. The maximum purchase price is the maximum mortgage amount plus the down payment, with the down payment floor recomputed for properties above $500,000 and above $1,500,000. The actual monthly payment at the contract rate is reported separately for reference.

Methodology

Maximum monthly housing budget is the lesser of (39% of gross monthly income minus monthly property tax minus monthly heat) and (44% of gross monthly income minus monthly property tax minus monthly heat minus other monthly debt). The maximum mortgage payment is this budget. The maximum mortgage amount inverts the Canadian mortgage formula at the qualifying rate (the greater of the contract rate plus two percentage points and 5.25%) with semi-annual compounding. Maximum purchase price is the maximum mortgage plus the down payment, floor-adjusted for the 5%, 5+10%, and 20% minimum down payment rules. Actual monthly payment at the contract rate is computed with the same formula at the contract rate. CMHC, Sagen, and Canada Guaranty premium tables are applied to insured mortgages at the 2024 rate schedule.

Frequently asked questions

How much can I borrow on a $100,000 salary in Canada?: At a 4.99% contract rate (6.99% qualifying rate), a single earner with $100,000 gross income, a 20% down payment, typical property tax and heating costs, and no other debt qualifies for a maximum purchase price of approximately $435,000. The binding constraint is the Gross Debt Service ratio of 39% computed at the stress-tested rate.
What are the GDS and TDS ratios?: The Gross Debt Service ratio is principal, interest, property tax, heat, and 50% of condo fees as a percentage of gross monthly income. The limit is 39% for most insured mortgages. The Total Debt Service ratio is GDS plus all other monthly debt payments as a percentage of gross monthly income, limited to 44%. Both ratios are calculated at the qualifying (stress-tested) rate, not the contract rate.
What is the mortgage stress test?: The stress test requires a borrower at a federally regulated Canadian lender to qualify at the higher of the contract rate plus two percentage points and the 5.25% floor rate. The stress-tested rate determines how much can be borrowed. The actual payment is calculated at the lower contract rate. OSFI Guideline B-20 makes the stress test mandatory at every federally regulated bank and credit union.
What is the minimum down payment in Canada?: 5% on the first $500,000 of purchase price, 10% on the portion between $500,000 and $1,499,999, and 20% on any home priced $1,500,000 or more. Any down payment below 20% triggers mandatory CMHC, Sagen, or Canada Guaranty default insurance, which adds 2.80% to 4.00% to the mortgage amount.
Does credit score affect affordability?: Credit score gates access and pricing but does not enter the GDS or TDS ratio math. A minimum credit score of 680 is typical for the best insured mortgage rates. Scores between 600 and 680 may still qualify but at higher rates or with B-lender financing. Scores below 600 typically require private lending with larger down payment and higher rate.
Can I buy a home with a co-signer in Canada?: Yes. A co-signer's income is added to the application and improves the GDS and TDS ratios. The co-signer is fully liable for the mortgage. Most major banks allow a parent, spouse, or sibling as co-signer. The co-signer's existing debts also count against the combined TDS, which can offset the income benefit.
How much do closing costs add?: Budget 1.5% to 4% of purchase price for closing costs. The largest item is land transfer tax, which ranges from 0.5% to 2% of price depending on province and municipality. Other items include legal fees of $1,500 to $2,500, title insurance of approximately $350, home inspection of $500 to $800, and utility and tax adjustments at closing. Alberta, Saskatchewan, and the territories have no provincial land transfer tax, which reduces closing costs by several thousand dollars.
Are all mortgage types subject to the stress test?: Uninsured mortgages at federally regulated lenders have been subject to the stress test since January 2018. Insured mortgages have been subject to it since 2016. Credit unions under provincial jurisdiction and private lenders are not federally regulated and set their own qualification rules. Switching at renewal to a different federally regulated lender currently does not require a fresh stress test as of the 2023 rule change, though the receiving lender may apply its own overlay.
What is a qualifying rate?: The qualifying rate, also called the stress-tested rate or benchmark rate, is the interest rate used to compute GDS and TDS ratios for the purpose of qualification. It is the greater of the contract rate plus two percentage points and the 5.25% floor set by OSFI. The qualifying rate is higher than the actual rate to build in room for future rate increases at renewal.
Does property tax affect my maximum mortgage?: Yes, directly. Annual property tax is divided by 12 and subtracted from the 39% GDS allowance before computing the maximum mortgage payment. For a $600,000 Toronto home at approximately 0.7% mill rate, annual property tax is roughly $4,200, or $350 per month. That amount reduces the maximum mortgage payment by $350, which reduces the maximum mortgage by approximately $55,000 at a 6.99% qualifying rate over 25 years.
Do all Canadian lenders apply the 39% and 44% limits?: Federally regulated lenders apply 39% GDS and 44% TDS as the standard ceiling. Some extend GDS to 42% and TDS to 44% for strong applicants. Provincial credit unions are not federally regulated and commonly allow up to 44% GDS and 50% TDS with a rate or fee premium. Private lenders lend on equity rather than ratios, which allows TDS up to 60% at a higher rate and larger fees.
What is the difference between pre-qualification and pre-approval?: Pre-qualification is a casual estimate based on verbal information. It carries no weight and amounts to an informal budget conversation. Pre-approval is a formal underwrite with documentation, a rate hold of 90 to 120 days, and a maximum approval amount. Neither is a guarantee of final approval, which requires property appraisal and final underwriting after an offer is accepted.