Realtor: calculators
How much home can you afford?
A realistic price range before you start looking, using the same ratios and stress test a lender will.
You could afford a home up to
$572,621
- Mortgage you could carryOver 25 years
- $485,854
- Payment at your rateWhat you would actually pay each month
- $2,822.99
- Payment at the stress-test rateLenders qualify you at 6.99%
- $3,400.00
- Includes mortgage insurance
- $13,233
- Gross debt service (GDS)Limit 39%
- 39.0%
- Total debt service (TDS)Limit 44%
- 39.0%
- What's holding it back
- Limited by your income
With less than 20% down this includes mortgage default insurance, which is added to the mortgage.
Get pre-approved with SukhpreetThis is an estimate, not a pre-approval. It uses the standard gross and total debt service limits (39% and 44%) and the federal stress test, but every lender applies its own rules to your credit, income and the property. Mortgage figures are provided by Sukhpreet Mahal, Mortgage Agent Level 1, Mortgage Alliance, licence #10530 — speak to her for a real number.
How lenders decide
Two ratios
Housing costs stay at or under 39% of your gross income, and all your debt payments together stay at or under 44%.
The stress test
You qualify at the higher of your rate plus two points or 5.25%, so there is room if rates move at renewal.
The down payment
Under 20% the mortgage must be insured, which adds a premium to the loan and caps the amortization at 25 years for most buyers.
Common questions
- How much home can I afford in Ontario?
- Lenders work it out from two ratios. Gross debt service (GDS) keeps your mortgage payment, property tax, heat and half of any condo fees at or under 39% of your income before tax. Total debt service (TDS) adds your other debt payments and keeps the total at or under 44%. Whichever runs out first sets your limit.
- What is the mortgage stress test?
- You have to qualify at the higher of your contract rate plus two percentage points, or 5.25%. So if you are offered 4.99%, the lender checks that you could still afford the payments at 6.99%. It is why the amount you qualify for is lower than the payment you will actually make.
- What is the minimum down payment?
- Five per cent of the first $500,000, ten per cent of the part above that, and twenty per cent once the price reaches $1.5 million. Below twenty per cent the mortgage has to be insured, which adds a premium to the loan.
- Does this count as a pre-approval?
- No. It is an estimate based on the numbers you enter. A pre-approval means a lender has looked at your credit, verified your income and documents, and put a figure in writing. Sukhpreet can arrange one.
Ready for a real pre-approval?
Share a few details and we'll call you to talk it through. The first conversation is free.
- Call
- 613-306-9900
- Office hours
- Monday to Friday9:00 AM to 6:00 PMSaturday10:00 AM to 2:00 PMSundayClosed
- Visit
- 101-14 Chamberlain Ave
Ottawa, OntarioGet directions (opens Google Maps in a new tab)