Home Affordability Calculator
Find out how much house you can truly afford in Canada based on your income and Canadian lending standards.
At current rates (not including taxes, insurance, utilities)
Your Situation
Pre-tax household income
Home Details
Current market rate
Down Payment: $80,000
Copies current inputs to your clipboard
Affordability Summary
Monthly Costs
Debt Service Ratio: 29% of gross income (should be <35%)
Same Income Across Provinces
Key Lending Rules
- Gross Debt Service (GDS): Mortgage + property tax + insurance + utilities ≤ 32% of gross income
- Total Debt Service (TDS): Total debt payments ≤ 40% of gross income (including car loans, credit cards)
- Price Rule: Most lenders approve mortgages up to 4-5x annual income
- Down Payment: Less than 20% down requires mortgage insurance (adds 2-4% to loan)
Hidden Costs
Your $2,500 mortgage payment is only part of the story. Add property tax (+$300), insurance (+$120), utilities (+$200), and maintenance reserves (+$200) = $3,320 total monthly.
Down Payment Impact
5% down adds $1,500/month in mortgage insurance. 20% down saves $2,000 in insurance costs over 5 years but requires $80,000 upfront capital.
Provincial Variation
Property tax ranges from 0.6% (MB/SK) to 1.2% (ON). Same $400k home costs $200/mo more in Ontario than Alberta.