Canadian Mortgage Affordability Calculator

How much mortgage can you afford in 2021?

Before shopping for a new home, use this Canadian mortgage affordability calculator to determine your maximum purchase price. Comprehensive and accurate, this affordability calculator takes into account the latest and most up-to-date Canadian mortgage rules. No need to worry about that! Any changes you make gives your results in real-time! No waiting!

June 1, 2021: Benchmark Rate is Now 5.25%

As of June 1, 2021, the Bank of Canada 5-year benchmark rate is 5.25%. 

What’s my next step?

Congratulations! You’re one step closer to getting approved for a mortgage! The next step is to complete a secure online application to determine your credit worthiness, income and debt. Once that is completed, we shop for you and compare the best mortgage rate and terms! This saves you a lot of time and money. Click for Pre-Approval Application.

How was my affordability calculated?

The Canadian mortgage affordability calculator uses your income, down payment, and debt ratios (GDS/TDS) to determine the maximum purchase price.  As of June 1, 2021, the maximum GDS and TDS are set to 39% and 44%, respectively for credit scores 680 and above.  Some banks or lending institutions may be more flexible. Contact us to help you determine your options.

To see how to you can get a higher purchase price, increase the down payment, or reduce your monthly debt payments.  This calculator is a reality check to ensure you get a mortgage you can truly afford given your specific financial situation.

What is a Mortgage Stress Test?

This mortgage affordability calculator also conducts a “mortgage stress test”. As the name of the rule implies, it puts your affordability to the test. Today, interest rates are at record lows, but what if they rise over the next few years? How would you cope with higher mortgage payments? Basically, the test helps you come face-to-face with the rising costs of being a homeowner.

The Mortgage Stress Test Rate depends on your down payment. If it’s less than 20%, you need a high-ratio mortgage. And that qualifying rate is either the Bank of Canada’s five-year benchmark rate (which is 5.25% as of June 1, 2021), or the rate offered by your lender, whichever is higher. Otherwise, if your down-payment is greater than 20%, your qualifying rate is either 5.25% or the rate you negotiate with your lender plus 2%, whichever is higher.