ONTARIO HOME INTEL • CALCULATORS
Ontario Home Affordability Calculator
Estimate how much home you may be able to afford based on household income, debts, down payment, property taxes, heating costs, condo fees, mortgage rate and amortization.
Household Finances
Mortgage Assumptions
Estimated Property Costs
Estimated Affordability
Estimated Qualification Ratios
Estimated Monthly Housing Costs
How Home Affordability Is Estimated
Mortgage affordability is not determined by income alone. Lenders compare housing expenses and other debt obligations with gross household income using debt-service ratios.
Gross Debt Service
Gross Debt Service, or GDS, measures qualifying housing expenses relative to gross income. CMHC’s standard maximum is 39%.
Total Debt Service
Total Debt Service, or TDS, includes housing costs plus other debt obligations. CMHC’s standard maximum is 44%.
Mortgage Stress Test
For mortgage qualification, the payment may be tested at an interest rate higher than the actual contract rate.
What Is the Mortgage Stress Test?
Federally regulated lenders generally require borrowers to qualify at the higher of 5.25% or the mortgage contract rate plus 2 percentage points.
For example, if the negotiated mortgage rate is 4.50%, the qualifying rate used for the stress test would generally be 6.50%.
The stress test does not mean the borrower actually pays the higher rate. It is used to assess whether the borrower could support the mortgage under a higher-rate scenario.
Maximum Qualification Is Not the Same as a Comfortable Budget
A lender may approve an amount that is higher than what feels comfortable within your household budget.
Consider groceries, utilities, transportation, childcare, savings, retirement contributions, maintenance, repairs, insurance, travel and other expenses that are not fully reflected in standard mortgage qualification ratios.
What Costs Count Toward GDS?
CMHC’s debt-service calculation generally includes mortgage principal and interest, property taxes and heating costs. Where applicable, 50% of condominium fees are also included.
TDS then adds other debt obligations to those housing expenses.
Other debt obligations can include items such as car loans, credit-card payments, student loans, lines of credit and certain support payments.
Home Affordability FAQ
How much mortgage can I afford on my income?
There is no universal income multiplier. Mortgage qualification considers income, debt payments, property taxes, heating costs, condo fees, interest rates, amortization, down payment and lender underwriting. This calculator estimates affordability using GDS and TDS debt-service ratios.
What are GDS and TDS?
GDS measures qualifying housing costs relative to gross household income. TDS includes those housing costs plus other debt obligations. This calculator uses 39% GDS and 44% TDS as reference maximums.
What mortgage rate does the calculator use?
The calculator uses the greater of 5.25% or your entered mortgage contract rate plus 2 percentage points for its qualification estimate.
Why does the calculator use only half of condo fees?
CMHC’s debt-service calculation generally includes 50% of condominium fees when calculating GDS and TDS.
Does the maximum purchase price mean I will be approved?
No. A lender or mortgage insurer may use different calculations and will also assess credit, employment, income verification, down-payment source, property type, appraisal, mortgage insurance eligibility and other underwriting factors.
Should I buy at the maximum amount shown?
Not necessarily. Mortgage qualification is different from personal affordability. A lower purchase price may leave more room for savings, repairs, maintenance and other household expenses.
Ready to Start Looking?
Use your affordability estimate as a starting point, then confirm financing with a lender or mortgage professional before relying on a purchase-price range.
Calculator Disclaimer: This calculator provides general estimates for educational and planning purposes only. It is not mortgage, lending, financial, legal, tax, accounting or real estate advice and does not constitute mortgage approval or pre-approval. Results are based on the information entered and simplified debt-service assumptions. Actual qualification can differ based on lender and insurer policies, credit, income verification, employment, debt treatment, mortgage insurance, interest rates, amortization, property taxes, heating costs, condominium fees, property type, appraisal, down-payment source and other underwriting requirements. Confirm affordability and financing with a lender or licensed mortgage professional.