How Much Home Can You Afford?

Enter your income, savings, and debts to calculate your maximum purchase price using standard GDS and TDS debt ratios.

Our affordability calculator uses two standard lending ratios to determine the maximum home price you can comfortably afford. The Gross Debt Service (GDS) ratio caps your total housing costs — including mortgage payment, property taxes, and heating — at 32% of your gross monthly income. The Total Debt Service (TDS) ratio ensures that all of your monthly debt obligations, including housing costs, car payments, and credit card minimums, do not exceed 40% of your gross income.

The calculator applies the stricter of the two ratios to determine your maximum monthly housing budget, then uses the standard mortgage payment (PMT) formula to back-calculate the largest loan you can support at your chosen interest rate and amortization period. Adding your down payment gives you the maximum affordable purchase price.

Keep in mind that lenders may apply additional qualifying criteria, including a stress test at the Bank of Canada qualifying rate (typically contract rate + 2%) . This tool provides a starting estimate — always consult a mortgage professional for a formal pre-approval.