Mortgage Affordability Calculator Canada

Application type

Applicant name Gross annual income

Cash savings for down payment FHSA amount Calculator caps this at $40,000 per applicant for planning. RRSP Home Buyers' Plan amount Calculator caps this at $60,000 per applicant for planning. Cash reserved for closing costs Mortgage insurance cash reserve Optional cash set aside for mortgage-default-insurance tax or if you plan to pay any premium upfront. The base premium is normally added to the mortgage in this estimate. Monthly debt payments Loans, credit cards, lines of credit, student loans, car payments, and other required debt payments. Monthly non-debt expenses Used for cash-flow comfort only, not lender approval ratios. Monthly take-home income Optional, used to estimate after-tax cash-flow buffer. This home has a permitted rental suite / additional unit that I plan to rent out

Mortgage interest rate Amortization years Estimated property tax % Use your municipality's rate when known. For rough planning, many Canadian examples land around 0.5% to 2% of assessed value per year; 1% is only a starting assumption. Monthly heating estimate Monthly condo fees, if any

Educational estimate only. Lenders use their own underwriting, credit review, rental income policy, income verification, property rules, and policy exceptions. This tool does not request your credit report and is not a pre-approval.

How to use it

Start with gross annual income for one applicant or multiple family applicants. Add the down payment sources you expect to use: savings, FHSA, and RRSP Home Buyers' Plan funds. Then enter monthly debt payments, rough living expenses, the mortgage rate you want to test, and property-cost assumptions.

If the home has a permitted basement suite or additional unit you plan to rent, turn on the rental option and choose how much rent to include. Use 50% for a conservative estimate unless a lender or broker tells you a stronger assumption is reasonable.

What affects approval

Mortgage lenders commonly review gross income, down payment, credit history, existing debt payments, property taxes, heating costs, condo fees, loan-to-value, amortization, rental income documentation, and the mortgage stress-test rate. Your regular expenses matter for your own comfort even when they are not always part of formal GDS/TDS calculations.

FAQ

Is this a mortgage pre-approval?

No. It is an educational estimate based on simplified debt-service ratios and user-entered assumptions. A lender or broker must verify documents and credit before issuing an approval.

Does this affect my credit score?

No. The calculator runs locally in your browser and does not submit an application or request a credit report.

Why does the tool use a stress-test rate?

Canadian mortgage qualification commonly tests borrowers at a rate higher than the contract rate. This calculator uses the greater of the entered rate plus 2% or 5.25% as an educational stress-test assumption.

Can rental suite income count?

Sometimes. CMHC and lenders may consider rental income from owner-occupied properties, but the usable amount and required documents depend on the unit, property, insurer, and lender policy.

Do I need cash for mortgage insurance?

With less than 20% down, mortgage default insurance is usually required and the base premium is often added to the mortgage. Some buyers may need cash for taxes on the premium or may choose to pay some costs upfront.