Mortgage Qualification Calculator Canada | Global Estate Corps

Borrower 1 — Income

Employment Type

100% of stated income counted if salaried 2+ years.

Annual Employment Income ($)

Gross (pre-tax) annual income.

Rental Income (annual $)

Lenders count 50% of gross rental income. Enter the full gross amount.

Other Annual Income ($)

Investment, child support received, ODSP, etc. Must be provable.

Co-Borrower — Income

Employment Type

Annual Employment Income ($)

Rental Income (annual $)

50% of gross rental income is counted.

Other Annual Income ($)

Property & Mortgage

Down Payment ($)

Used to calculate CMHC, min down, and max home price.

Contract Interest Rate (%)

Your offered rate. Stress test will use max(this + 2%, 5.25%).

Amortization

Credit Score Range

Above 680: GDS 39% / TDS 44%. Between 650–679: GDS 32% / TDS 40%.

Property Province

Affects default heat cost estimate and provincial context.

Monthly Property Tax ($)

Annual property tax ÷ 12. Included in GDS.

Monthly Heat Estimate ($)

CRA default: $150/mo. Some lenders use higher. Included in GDS.

Condo / HOA Fee (monthly $)

50% of condo fees are included in GDS. Enter $0 for non-condo.

Monthly Debts (included in TDS only)

Car Payment ($)

Student Loan Payment ($)

Credit Card Min. Payment

Or use 3% of total card balances if minimum isn't known.

Line of Credit Payment ($)

Most lenders use 3% of outstanding LOC balance as monthly obligation.

Support Payments ($)

Child or spousal support paid monthly.

Other Monthly Debts ($)

Calculating

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Maximum home price based on your qualifying income and debts at the stress test rate.

Max Mortgage

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at stress test rate

Qualifying Income

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gross household / yr

Monthly Payment

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at contract rate

Stress Test Rate

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qualifying rate used

GDS — Gross Debt Service max 39%

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max

TDS — Total Debt Service max 44%

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max

Stress Test — OSFI B-20 Qualifying Rate

Contract Rate

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Rate + 2%

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Qualifying Rate Used

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Approval Diagnosis — What's Limiting You

How to Increase Your Maximum — Scenario Impact

Pay Off $500/mo Debt

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max home price

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+$20,000 Down Payment

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max home price

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+$15,000 Annual Income

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max home price

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Income Needed for a Target Home Price

Target Home Price ($)

With your current debts and down payment:

Min. Income (GDS)

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Min. Income (TDS)

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Min. Income (binding)

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You Currently Have

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Results are estimates based on OSFI B-20 guidelines and CMHC insurer rules. Actual lender decisions depend on credit bureau report, employment verification, property appraisal, and lender-specific overlays. Credit unions and provincially-regulated lenders may apply different ratios. Consult a licensed mortgage professional before making any purchase commitments.

Understanding Canadian Mortgage Qualification

Canadian lenders use two income tests — GDS and TDS — both calculated at a stress test rate that is higher than your actual mortgage rate. This means you qualify for less than you might expect. The stress test was introduced in 2018 under OSFI Guideline B-20 and applies to all federally regulated lenders (major banks). Provincially regulated credit unions are exempt, though many apply it voluntarily.

Income types matter: Not all income is counted equally. Salaried T4 income from a 2+ year employer is counted at 100%. Commission, bonus, and self-employment income use a 2-year average from your Notice of Assessment (line 15000). Rental income is counted at 50% of gross by most A-lenders. Child support received with a court order is typically counted at 100%. Pension and CPP/OAS income is fully counted.

The Stress Test Explained

Since 2018, you must qualify at max(your rate + 2%, 5.25%). If your lender offers 5.24%, you qualify at 7.24%. This ensures you could still afford payments if rates rise. It typically reduces your maximum purchase price by 15–20% compared to qualifying at your actual rate. The 5.25% floor was set to prevent buyers from gaming the test by choosing very low variable rates.

GDS vs. TDS — What's the Difference?

GDS (Gross Debt Service) covers housing costs only: mortgage payment + property tax + heat + 50% condo fees. Max 39% of gross income. TDS (Total Debt Service) adds all other debts on top: car loans, credit cards, student loans, lines of credit, support payments. Max 44% of gross income. Whichever constraint bites first determines your maximum mortgage.

Self-Employed Qualifying

Self-employed borrowers typically qualify using a 2-year average of their Line 15000 (Total Income) from their T1 General / NOA. If you've been deducting a lot of business expenses, this can significantly reduce your qualifying income — even if your actual cash flow is strong. Some B-lenders offer "stated income" or "gross revenue" programs at higher rates, allowing you to qualify on business revenue before expenses.

A vs. B vs. Private Lenders

A-lenders (major banks and federally regulated lenders) require stress test compliance and GDS/TDS within CMHC limits. B-lenders (alternative lenders, trust companies) accept higher ratios, stated income, and recent credit issues — but charge 0.5–2% higher rates. Private lenders ignore GDS/TDS entirely but charge 8–12% and require significant equity. Most Canadians should aim for A-lender qualification.

Qualification FAQs

The stress test (OSFI Guideline B-20) requires you to qualify at the higher of your contract rate + 2% or 5.25%. It applies to all federally regulated lenders (banks) for new purchases and refinances. As of 2024, if you're renewing your mortgage and switching lenders without increasing your loan or amortization, you're exempt. Provincially regulated credit unions are not required to apply it, though many do. Private lenders do not use it.

Adding a co-borrower (spouse, partner, or family member) combines your household gross income, which directly increases both your GDS and TDS allowances. However, the co-borrower's debts are also added to the TDS calculation. A co-borrower with strong income and low debts can meaningfully increase your purchase limit. Both applicants' credit scores will be checked — the lower score may be used as the qualifying score depending on the lender.

Yes, significantly. Borrowers with a credit score of 680+ qualify at the standard GDS/TDS limits of 39%/44%. Scores between 650–679 are limited to 32%/40%, which meaningfully reduces your maximum mortgage. Scores below 650 typically require a B-lender at higher rates, or a larger down payment to mitigate risk. A higher credit score may also get you a lower contract rate, which reduces the stress test qualifying rate and increases your maximum mortgage.

Counted at 100%: T4 salaried (2+ year employment), pension, CPP/OAS, court-ordered child support received. Counted using a 2-year average: commission income, bonus, overtime, self-employment (Line 15000 of T1/NOA), contract work. Rental income: most A-lenders count 50% of gross rental income. Investment income: 2-year average if provable. EI, social assistance, and casual income are generally not counted by A-lenders. Always disclose all income — lenders will verify through T4s, NOAs, and pay stubs.

Mortgage QualificationCalculator — Canada

Mortgage Qualification
Calculator — Canada