Maximum Mortgage Calculator
Calculate the maximum mortgage amount you can afford based on your annual income, debt ratios, and monthly obligations. Adjust the settings to see how different factors affect your borrowing power.
Maximum Mortgage Calculator
Calculator
Maximum Purchase Price
$882,000
Maximum Mortgage
$705,600
Down Payment (20%)
$176,400
Total Monthly Payment
$4,111
How This Calculator Works
This calculator uses the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine your maximum mortgage amount. These are standard lending guidelines used by Canadian financial institutions.
GDS Ratio (Gross Debt Service)
The percentage of your gross monthly income that goes toward housing costs (mortgage payment, property taxes, heating, and 50% of condo fees). Typically capped at 39-50%.
TDS Ratio (Total Debt Service)
The percentage of your gross monthly income that goes toward all debt obligations (housing costs plus car loans, credit cards, and other liabilities). Typically capped at 44-50%.
Understanding the Stress Test
Canadian mortgage regulations require lenders to qualify you at a higher "qualifying rate" (currently around 6.59%) even if your actual mortgage rate is lower. This ensures you can still afford your mortgage if rates increase.
Example: If you're getting a mortgage at 4.69%, lenders will test your affordability at 6.59% to ensure you have a safety buffer for potential rate increases.
Factors That Affect Your Maximum Mortgage
Annual Income
Higher income increases your borrowing capacity. Include all stable, verifiable income sources.
Existing Debts
Car loans, credit cards, and other monthly obligations reduce your available mortgage capacity.
Property Costs
Property taxes, heating, and condo fees all factor into your maximum borrowing amount.
Interest Rates
Higher qualifying rates mean lower maximum mortgage amounts to ensure affordability.
Amortization Period
Longer amortization (up to 35 years for uninsured mortgages) reduces monthly payments and increases capacity.
Down Payment
This calculator assumes 20% down. Larger down payments reduce mortgage insurance costs.
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