Canada Mortgage Affordability Calculator
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Stress Testing
Mortgage Stress Test Rates as of November 14, 2026
- Stress Test Rate: The higher of 5.25% and your mortgage rate + 2%
- The lowest stress test rate for insured mortgages (e.g. down-payment < 20%) is: NaN%% (Get This Rate) + 2%=
- The lowest stress test rate for uninsured mortgages (e.g. down-payment ≥ 20%) is: NaN%% (Get This Rate) + 2%=
- The lowest stress test rate for uninsurable mortgages (e.g. home prices ≥ $1.5 M or refinances) is: NaN%% (Get This Rate) + 2%=
Wondering how much house you can afford in Canada? Our calculator factors in CMHC rules and today's interest rates to give you a precise estimate. It takes into account government stress testing regulations published by the Office of the Superintendent of Financial Institutions (OSFI) for uninsured mortgages and by the Canada Mortgage and Housing Corporation for insured mortgages. According to CMHC and OSFI mortgage affordability rules, borrowers must qualify using a stress test rate equal to their mortgage interest rate plus a margin of 2% with a floor of 5.25%.
Mortgage Down payment and Affordability
Your mortgage down payment directly impacts your home affordability. A larger down payment can reduce your mortgage borrowing, lowering your interest costs and CMHC mortgage insurance premiums. A smaller down payment could lead to higher interest costs, more expensive mortgage insurance and potentially even disqualify you from an insured mortgage if your debt servicing ratios are too high.
With a down payment of 20% or more, you can have a conventional mortgage without mortgage insurance and skip both the fees and requirements of CMHC mortgage insurance.
How Lenders Decide How Much House You Can Afford
In Canada, your income decides how big a mortgage you can get, and your down payment mostly adds to the price on top of that. Lenders cap the share of your gross income that can go to housing costs, and to housing plus other debts. They check this at a stress-test rate about two points above your actual rate. For insured mortgages, CMHC and the other insurers set those caps at 39% and 44%. Many lenders use the same numbers, but the big banks’ own calculators vary widely, from about 32% and 40% at RBC to above the insurers’ limits at TD. At the insurers’ limits and with no other debts, you can borrow roughly 4.5 times your household income. At $100,000 a year, that’s about $448,000, which, with the minimum down payment, buys a home of about $471,000. Put 20% down instead, and the mortgage stays about the same, but the extra cash lifts the price to about $552,000. Either way, the actual monthly payment comes to about 30% of gross income. Small debts often cost you nothing, because the gap between the two limits absorbs them: at $100,000 income, up to about $415 a month of debt payments fits. Beyond that point, every $100 a month in debt payments cuts roughly $15,000 from what you can borrow. A lender with stricter limits will lend less.
Affordability by household income
| Household income | Max price, min. down | Down payment | Mortgage | Monthly payment | Max price, 20% down | Down payment | Mortgage | Monthly payment |
|---|---|---|---|---|---|---|---|---|
| $50,000 | $236,000 | $11,800 | $224,000 | $1,253 | $277,000 | $55,400 | $221,000 | $1,236 |
| $75,000 | $354,000 | $17,700 | $336,000 | $1,877 | $415,000 | $82,900 | $332,000 | $1,852 |
| $100,000 | $471,000 | $23,600 | $448,000 | $2,501 | $552,000 | $110,500 | $442,000 | $2,468 |
| $125,000 | $593,000 | $34,300 | $559,000 | $3,122 | $690,000 | $138,000 | $552,000 | $3,084 |
| $150,000 | $717,000 | $46,700 | $671,000 | $3,745 | $828,000 | $165,600 | $662,000 | $3,699 |
| $200,000 | $964,000 | $71,400 | $893,000 | $4,987 | $1,104,000 | $220,700 | $883,000 | $4,931 |
| $250,000 | $1,212,000 | $96,200 | $1,116,000 | $6,232 | $1,380,000 | $276,100 | $1,104,000 | $6,167 |
How we built this table: We ran each income through WOWA’s Mortgage Affordability Calculator on October 27, 2026. The buyer lives in Toronto, isn’t a first-time buyer, has no car loans, credit card balances or other debts, and pays no condo fees. The calculator applies the mortgage insurers’ debt limits (39% of income for housing costs, 44% including other debts); a lender using stricter limits would lend less. We used a 4.59% five-year fixed rate, so every buyer had to pass the stress test at 6.59%. Property tax, heating and living costs are the calculator’s own estimates. “Minimum down payment” means 5% of the first $500,000 of the price plus 10% of the rest. Mortgage default insurance premium is typically added to your mortgage balance, but you need to fund your closing costs in cash in addition to your down payment. To keep the columns comparable, every figure assumes a 25-year amortization, even though 20% down would let you stretch to 30 years and borrow more. A lower mortgage rate or a longer amortization would raise these numbers; debts, condo fees or a higher property tax bill would lower them. Prices are rounded to the nearest $1,000.
Income needed for a $400k, $500k and $700k mortgage
| Mortgage | Income needed, min. down | Home price it buys | Income needed, 20% down | Home price it buys | Monthly payment |
|---|---|---|---|---|---|
| $400,000 | $89,000 | $421,000 | $91,000 | $500,000 | $2,234 |
| $500,000 | $112,000 | $528,000 | $113,000 | $625,000 | $2,792 |
| $700,000 | $157,000 | $750,000 | $159,000 | $875,000 | $3,909 |
This table uses the same assumptions as the Affordability by household income table.
How to Increase Your Mortgage Affordability
There are a number of ways that borrowers can increase their mortgage affordability and lower their costs over the lifetime of their mortgage:
- Save up a larger down payment: A larger down payment can lower your mortgage borrowing and lead to smaller payments and less interest over the lifetime of your mortgage. You can also save on CMHC mortgage insurance and skip on mortgage insurance premiums altogether if you have a down payment of 20% or more.
- Increase your credit score: If you have a low credit score, increasing your credit score could help your eligibility for mortgage insurance and better terms on your mortgage. Lenders are willing to lend more to a borrower who has proven their ability to pay bills on time compared to one who has not.
- Shop around for rates: A lower mortgage interest rate can lower your regular mortgage payments, letting you handle a larger mortgage with your income. It can also save you tens of thousands over the course of your mortgage. Be sure to shop around for the best mortgage rates.
- Check out different lenders: Different lenders will have different standards for lending and offer different terms and conditions on their mortgages. Some offer additional features like RBC's Double-Up program. Going over your options with a mortgage broker can help you get the most from your mortgage.
- Increase your amortization: If you increase your amortization, you can reduce your regular payments and borrow more by spreading out the mortgage over a longer period of time. Doing so may increase your total mortgage interest cost, however, and decrease your choice of mortgage rates and lenders. Before committing to a decision, check how different amortizations will affect your mortgage and your monthly payments.
- Consider a Joint Mortgage: Combining your income with a spouse, friend, or anyone else will help you qualify for a mortgage. The higher joint income will have an easier time meeting debt service ratio requirements. This is known as a joint mortgage. However, if one partner begins missing payments, the other partner will be required to pay the difference or lose the home altogether.
CMHC Insurance
An insured mortgage lets you buy a home with a down payment of less than 20%, giving you more options and flexibility in choosing the right home. In addition, lenders usually offer the lowest mortgage rates to insured mortgages as their risk is covered by your mortgage insurance.
The Canada Mortgage and Housing Corporation (CMHC) is a crown corporation that insures most mortgages in Canada. They charge an upfront fee or premium for mortgage insurance based on the amount of down payment you have or the loan-to-value (LTV) of the mortgage. They offer insurance for mortgages with an LTV of up to 95%. The premium will be added onto your mortgage and amortized over its length. In some provinces, you have to pay sales taxes on the insurance premium.
Down payment Impact on CMHC Mortgage Insurance Premiums for a $500K Home
Debt Service Ratios Implied by Big Bank Affordability Calculators (at the Stress Test Rate)
| Bank | Implied GDS | Implied TDS |
|---|---|---|
| RBC | 32% | 40% |
| TD | 43% | 48% |
| Scotiabank | 37% | 45% |
| BMO | 39% | 44% |
| CIBC | 38% | 42% |
Frequently Asked Questions
How is mortgage affordability calculated in Canada?
Your mortgage affordability in Canada is determined by your down payment and your debt service ratios. Your gross debt service (GDS) ratio, which covers housing costs, cannot exceed 39% of your gross income, and your total debt service (TDS) ratio, which adds your other debt payments, cannot exceed 44%. Both are checked at the stress test rate. Your affordable home price is the lowest of these limits.
What is the mortgage stress test rate in Canada?
The Canadian mortgage stress test requires you to qualify at the higher of 5.25% or your mortgage rate plus 2%.
How much mortgage can I afford in Canada?
The amount of mortgage you can afford in Canada depends on your household income, down payment, monthly debts, and location. Under CMHC rules, your housing costs cannot exceed 39% of your gross income (GDS ratio), and your total debt payments cannot exceed 44% (TDS ratio). Use a mortgage affordability calculator to find your specific limit.
What is the minimum down payment in Canada?
In Canada, the minimum down payment is 5% for homes under $500,000, 5% on the first $500,000 plus 10% on the remainder for homes between $500,000 and $1.5 million, and 20% for homes priced at $1.5 million or more.
How can I increase my mortgage affordability?
You can increase your mortgage affordability in Canada by saving a larger down payment, improving your credit score, shopping for lower mortgage rates, increasing your amortization period, reducing existing debt payments, or applying with a co-applicant to combine incomes.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA® does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.