Home Affordability Calculator
Find out how much house you can afford
Use our calculator to determine your home buying budget based on your income, debts, and down payment. We'll help you understand what you can afford using Canadian mortgage guidelines.
Include credit cards, loans, car payments, etc.
Enter your information and click "Calculate Affordability" to see your results
Understanding Home Affordability
The GDS ratio measures the percentage of your gross monthly income needed to cover housing costs including mortgage payments, property taxes, and heating.
Lenders typically require: ≤ 32%
The TDS ratio measures the percentage of your gross monthly income needed to cover all debts including housing costs plus credit cards, loans, and other obligations.
Lenders typically require: ≤ 40%
Stable Income: Consistent employment history and reliable income sources
Good Credit Score: A credit score of 680+ improves your chances and rates
Manageable Debt: Low debt-to-income ratios show you can handle payments
Adequate Down Payment: Minimum 5% for homes under $500k, higher for more expensive properties
Tips to Improve Your Affordability
A larger down payment reduces your mortgage amount and can help you avoid mortgage insurance, lowering your monthly payments and improving affordability.
Pay down credit cards, loans, and other debts before applying for a mortgage. Lower monthly obligations improve your TDS ratio significantly.
A higher credit score can qualify you for better interest rates, reducing your monthly payments and increasing the home price you can afford.
A longer amortization period (up to 25-30 years) reduces monthly payments, though you'll pay more interest over time. Balance affordability with total cost.
Including a spouse or partner with additional income can significantly increase your affordability by combining incomes for qualification.
Compare mortgage rates from multiple lenders. Even a 0.25% difference in rates can save thousands over the life of your mortgage.
Frequently Asked Questions
Ready to Get Pre-Approved?
Take the next step towards homeownership. Get pre-approved and start your home buying journey with confidence.