Home affordability
Lenders do not lend against the price you want; they lend against two ratios, tested at a rate higher than the one you will pay. This works backwards from those ratios to the price that clears them.
- GDS / TDS back-solve
- Stress test at rate + 2%
- Closing costs by province
Nothing you type leaves this page. The whole model runs in your browser.
The two ratios
| Mortgage payment at the qualifying rate | $3,765 |
|---|---|
| Property taxEstimated at 1% of price | $569 |
| Heat | $150 |
| Half of condo fees | $0 |
| Other debt paymentsCounts toward TDS only | $650 |
| Total counted | $5,133 |
What other debt costs you
Every $100 of monthly debt payment removes roughly $5,536 of purchasing power. Clearing a car loan before you apply is usually worth more than saving the same amount toward the down payment.
Closing costs
| Land transfer tax | $6,123 |
|---|---|
| Legal fees and disbursements | $1,800 |
| Title insurance | $400 |
| Home inspection | $550 |
| Appraisal | $400 |
| Adjustments and moving | $1,706 |
| Total closing costs | $10,979 |
GDS is the share of gross income going to the mortgage payment, property tax, heat and half of any condo fee; the limit is 39.0%. TDS adds every other debt payment and is limited to 44.0%. Both are tested at the qualifying rate, not your contract rate.
The price is found by binary search: for each candidate price the model computes the minimum down payment, the insurance premium, the qualifying payment and both ratios, then narrows until it finds the largest price that still passes.
Property tax is estimated at 1% of the purchase price. Replace it with a real figure from the listing when you have one — in some municipalities it is double that.
These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.
Semi-annual compounding, CMHC premium, and the equity you build each year.
Stack FHSA, the Home Buyers’ Plan and cash savings into a dated timeline.
Build a budget from take-home pay, not gross, with savings-rate targets.
Take-home pay with federal and provincial tax, CPP, EI, and RRSP impact.