Home Affordability Calculator
Enter your monthly budget and down payment to find out the maximum home price you can afford in Canada. Updated for 2026.
📋 Canadian Down Payment Rules
| Home Price | Minimum Down Payment | CMHC Required? |
|---|---|---|
| Under $500,000 | 5% of purchase price | Yes |
| $500,000 – $999,999 | 5% on first $500K + 10% on remainder | Yes |
| $1,000,000 – $1,499,999 | 20% minimum | No — not CMHC eligible |
| $1,500,000+ | 20% minimum | No |
How Canadian Lenders Determine Affordability
Canadian mortgage lenders use two key debt service ratios. The Gross Debt Service (GDS) ratio — housing costs (mortgage, property tax, heating, 50% of condo fees) — must not exceed 32% of gross monthly income. The Total Debt Service (TDS) ratio — all monthly debt payments combined — must not exceed 44% of gross income.
On top of these ratios, the federal mortgage stress test requires qualifying at a rate higher than your contract rate — either your rate plus 2%, or 5.25%, whichever is higher. In the current rate environment, this is the primary factor limiting buying power. A household that qualified for $700,000 at 2% rates qualifies for significantly less today.
Beyond lender approval, consider what you can comfortably sustain. Owning a home includes costs beyond the mortgage: property taxes, home insurance, maintenance (budget 1-2% of home value annually), utilities, and possibly condo fees. Many financial advisors suggest keeping total housing costs under 30% of take-home pay — not gross income — for long-term financial health.
Frequently Asked Questions
Gross Debt Service — your total monthly housing costs (mortgage P+I, property tax, heat) should not exceed 32% of your gross monthly income.
Personal savings, family gifts (with documentation), RRSP Home Buyers' Plan withdrawal (up to $35,000 per person), or proceeds from selling another property.
5% for homes up to $500,000. 10% on the portion $500,000-$999,999. 20% minimum for homes $1,000,000+ (CMHC insurance not available above this threshold).