What this calculator answers
Lenders do not ask what you feel comfortable paying. They ask whether your income can carry the mortgage at a higher test rate, after property tax, heating, half of any condo fees and your other debts. This calculator works backwards from those rules to the highest price you may qualify for, and tells you which rule is holding the number down: your housing costs, your total debts, or your down payment.
The maximum is a ceiling, not a target. A price you qualify for can still be a stretch once you add utilities, maintenance and savings.
How the calculation works
- Qualifying rate: the higher of 5.25% or your rate plus 2 percentage points. This is the federal minimum qualifying rate (a regulation).
- The qualifying payment, property tax, heating and half the condo fees must fit within 39% of gross monthly income (GDS). Those costs plus your other debt payments must fit within 44% (TDS). These are the CMHC limits; lenders and other insurers may use different ones.
- The calculator raises the price until a rule fails. At each price it checks the minimum down payment, whether insurance is needed, adds the premium to the mortgage and scales property tax with the price.
- Payments use Canadian fixed-rate math: interest compounded semi-annually, paid monthly.
Assumptions and limits
- Income, debts, heating and property tax are the numbers you enter. The property tax default is an Edmonton-area example only.
- Lenders may treat variable income, rental income, credit card balances and lines of credit differently from this tool.
- Insured mortgages are capped at 25 years unless you are a first-time buyer or buying a newly built home (regulation). For uninsured mortgages, 30 years is a lender choice.
- Insurance premiums use the standard schedule for traditional down payments. Insurer and lender approval also depends on credit and the property.
- Closing costs, moving and the cost of furnishing a home are not included.
Common questions
Is this the same as a pre-approval?
No. It is an estimate from a few numbers. A pre-approval looks at your credit, documents your income and holds a rate for a period. Even then, final approval depends on the property and the lender.
Why is the qualifying rate higher than my rate?
Federal rules require lenders to test whether you could still afford the mortgage if rates rose. You qualify at the greater of 5.25% or your contract rate plus 2%, but you pay your actual rate.
What helps me afford more?
Paying off a car loan or credit card balance often helps more than people expect, because every dollar of monthly debt payment counts against the 44% limit. A larger down payment, a co-borrower, or a lower property tax area also change the result.
Should I buy at my maximum?
Many people choose to stay below it. Your budget should leave room for utilities, insurance, repairs, saving and any changes to your income. The payment calculator can help you test a price you are comfortable with.
Does a 30-year amortization help?
It lowers the payment, so it raises the price you can qualify for, but you pay more interest over time. With less than 20% down it is only available to first-time buyers and buyers of new builds. Compare both in the 25 vs 30 year calculator.
Sources
- OSFI: minimum qualifying rate (rules checked 2026-10-31)
- CMHC: mortgage loan insurance (rules checked 2026-10-31)
- CMHC notice, December 2024 changes (rules checked 2026-10-31)
- Ratehub: PST on CMHC insurance by province (rules checked 2026-10-31)