Income

Annual Household Income ($)

Total Monthly Debts ($)

Car loans, student loans, credit card minimums, lines of credit.

Down Payment & Monthly Costs

Down Payment ($)

Monthly Property Tax ($)

Monthly Heating ($)

Monthly Condo Fees ($)

Rate & Amortization

Contract Rate (%)

%/yr

0%15%

Qualifying Rate — Stress Test (%)

%/yr

OSFI requires you to qualify at the higher of your contract rate + 2% or 5.25%. Auto-set above — you can override.

Amortization Period

Maximum Purchase Price

—

at stress test rate

Qualifies

Max Mortgage

—

before CMHC

Monthly Payment

—

at contract rate

Monthly Income

—

gross household

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Monthly Housing Cost Breakdown

Mortgage Payment (P+I)	—
Property Tax	—
Heating	—
Condo Fees (50% per lender rules)	—
Total Housing Costs (GDS)	—

Results are estimates only. Actual qualification depends on your lender, credit score, and employment history. Consult a licensed mortgage professional before making purchase decisions.

GDS — Gross Debt Service Ratio

—

0%39% limit60%+

Housing costs (mortgage + tax + heat + 50% condo) as % of gross income. Max 39%.

TDS — Total Debt Service Ratio

—

0%44% limit60%+

All housing costs plus all other monthly debts as % of gross income. Max 44%.

How Canadian Mortgage Qualification Works

Canadian lenders qualify you at the stress test rate — the higher of your contract rate plus 2%, or 5.25%. Even if you lock in at 5.24%, you must prove you can afford payments at 7.24%. This ensures borrowers can handle future rate increases without defaulting.

Your maximum mortgage is limited by whichever ratio hits its ceiling first — GDS at 39% of gross income or TDS at 44%. High existing debts (car loans, student loans) significantly tighten the TDS constraint, reducing purchasing power far more than most buyers expect.

The Stress Test

Introduced by OSFI in 2018. All insured and uninsured mortgages must qualify at contract rate + 2% or 5.25%, whichever is higher. The stress test rate is recalculated automatically above.

GDS vs TDS

GDS is housing costs only. TDS adds car loans, student loans, credit card minimums, and other debts. Existing debt is often the biggest constraint on what buyers can qualify for.

20% Down Advantage

20% down eliminates CMHC insurance, allows 30-year amortization, and opens more lender options. Even a few percent extra down can meaningfully increase your purchasing power.

Pay Down Debts First

Eliminating a $500/month car payment before applying can increase your max purchase price by $50,000–$80,000. TDS is often the binding constraint for buyers with existing debts.

This estimate is a great starting point — but a pre-approval letter locks in your rate and tells sellers you're serious. We'll connect you with trusted mortgage specialists today. No obligation.

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Canadian Mortgage Payment FAQs

Mortgage payments in Canada are calculated using the loan amount, interest rate, and amortization period. Each payment includes both principal and interest. Early in the mortgage, most of the payment goes toward interest, while later payments gradually build more equity by paying down principal. Most Canadian mortgages are amortized over 25 years, but payments can be made monthly, bi-weekly, or accelerated bi-weekly to reduce interest over time.

A fixed-rate mortgage locks in your interest rate for the entire term (commonly 3–5 years), meaning your payment remains predictable regardless of market changes. A variable-rate mortgage fluctuates with the lender's prime rate, meaning payments or interest portions may change over time. Fixed rates offer stability, while variable rates often start lower but carry more risk if interest rates rise.

Mortgage pre-approval typically requires proof of income and financial stability. Lenders usually request recent pay stubs, employment letters, T1 General tax returns, Notices of Assessment, and bank statements. Self-employed applicants may need two years of financial statements or tax filings. Lenders will also review your credit report and current debts to determine your borrowing capacity.

Refinancing replaces your current mortgage with a new one, often to secure a lower interest rate, consolidate debt, or access home equity. Canadian lenders typically allow refinancing up to 80% of the home's current value. The process includes applying for a new mortgage, verifying income and credit, ordering a property appraisal, and completing legal paperwork to register the new mortgage.

Mortgage approval depends on several factors including income, credit score, existing debts, down payment amount, and interest rates. Canadian lenders apply debt-service ratios such as Gross Debt Service (GDS) and Total Debt Service (TDS) to ensure borrowers can afford their mortgage payments. Higher income, lower debts, and a larger down payment generally increase borrowing power.

Tools & Calculators

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