Calculator

How Much Mortgage Can I Afford?

Stress test included · GDS 39% / TDS 44% limits

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Your Financial Details

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Stress test rate used for qualification: 7.25%
(higher of contract rate + 2% or 5.25%)

Maximum Mortgage

$465,602

Qualifying rate: 7.25% · 25-year amortization

Max Purchase Price

$545,602

mortgage + down payment

Est. Monthly Payment

$2,775

at 5.25% contract rate

Ratio Summary

GDS Ratio33.4% / 39% max
TDS Ratio38.4% / 44% max

Limit hit: GDS ratio: housing costs relative to income

Your Max vs Ottawa Average

Your max: $545,602Ottawa avg: $650,000

These numbers are a starting point. Book a free call and Jessy will tell you exactly what you qualify for.

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How Affordability Is Calculated

Canadian lenders use two ratios to determine your maximum mortgage:

  • GDS (Gross Debt Service): Housing costs (mortgage P+I, property tax, heat, 50% of condo fees) divided by gross monthly income. Maximum: 39%.
  • TDS (Total Debt Service): All housing costs plus all other monthly debt payments divided by gross monthly income. Maximum: 44%.

The stress test requires you to qualify at the higher of your contract rate + 2% or 5.25%. This means if your actual rate is 4.89%, you must qualify at 6.89%. This calculator uses the stress test rate to compute your maximum mortgage, matching what lenders will actually approve.

Heat is estimated at $150/month for GDS calculation purposes, consistent with standard lender practice.