Acres

Affordability

The highest price a lender is likely to approve, using the same stress test and debt ratios they use.

You could qualify for about

$431,942

Your income and debts are what limit the price.

Your finances

$
Everyone on the mortgage
$
Car and student loans, minimum credit card and line of credit payments
$
Keep closing costs (about 2% to 3% of the price) separate

The mortgage

%
Your quoted rate
Amortization
30 years with under 20% down: first-time buyers and new builds only

Costs of the home

$
Varies by home
$
Lenders ask for one
$

At that price

Down payment
$30,000
CMHC insurance premiumAdded to the mortgage
$16,078
Mortgage
$418,020
Monthly paymentAt your 4.5% rate
$2,313.63
Payment + property tax + heating
$2,764

How lenders test it

Stress test rateHigher of your rate + 2 points, or 5.25%
6.50%
Gross debt service (GDS)Housing costs ÷ income. Limit 39%
39%
Total debt service (TDS)Housing + other debts ÷ income. Limit 44%
43.8%
Qualifying is not the same as comfortable. Lenders don't count childcare, savings, electricity or upkeep, so check the payment against your own budget too.
How it works
  • Lenders test you at the higher of your rate plus 2 percentage points or 5.25% (the stress test), even though you'd pay your actual rate.
  • Housing costs (mortgage payment, property tax, heating and half of any condo fees) can be up to 39% of gross income (GDS).
  • Housing costs plus your other debt payments can be up to 44% of gross income (TDS). Whichever limit is tighter sets your maximum payment.
  • The calculator then finds the highest price where that payment covers the mortgage, including the CMHC premium, and your savings meet the minimum down payment.

Sources

OSFI: Minimum qualifying rate for uninsured mortgagesCMHC: Calculating GDS / TDSCMHC: Mortgage loan insurance premiums

Estimate only, not a pre-approval or financial advice. Lenders also look at your credit, job history and the property, and some use stricter limits than CMHC's.