Mortgage Affordability Calculator

Live rates · USA · May 3, 2026
Source: Freddie Mac · updated weekly
Income
Annual gross income
$/yr
Co-borrower income
$/yr
Monthly debts
Car, student, credit card
$/mo
Mortgage
Down payment
$
Interest rate
%
Amortization
Housing costs
Property tax rate
%/yr
Monthly HOA / condo fee
$/mo
Max home price
—
based on qualifying ratios
Monthly payment
—
on max purchase price
Qualifying ratios
Front-end ratio
Max 28%
—
Back-end ratio
Max 36%
—
Monthly budget breakdown
Enter your income above to calculate your maximum home price.
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Home price
$
Down payment
$
20.0% of price
Annual interest rate
%
Amortization
Payment frequency
Extra monthly payment
$/mo
Monthly payment
—
Loan amount
—
Total interest
—
Total cost
—
Payment breakdown
Principal—
Interest—
Balance & cumulative interest
Balance
Cum. interest
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Current loan
Remaining balance
$
Current rate
%
Remaining term
yrs
New loan
New rate
%
New term
Closing costs
$
Current loan
—
per month
Remaining interest: — Total remaining: —
After refinancing
—
per month
Total interest: — Total + closing: —
Cumulative interest paid (+ closing costs on new loan)
Current loan
New loan
Buying
Home price
$
Down payment
$
20.0% of price
Mortgage rate
%
Amortization
Property tax rate
%/yr
Maintenance + insurance
%/yr
Renting
Monthly rent
$/mo
Annual rent increase
%/yr
Returns & horizon
Home appreciation
%/yr
Renter investment return
%/yr
Analysis period
Monthly housing cost
Owning
—
Renting
—
Net worth at 20 years
Buying
—
Home equity + invested savings
Renting + investing
—
Down pmt + invested savings
Net worth over time
Buying
Renting + investing
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About the Mortgage Affordability Calculator

This calculator finds the maximum home price you can qualify for under the rules that actually govern your mortgage — Canadian OSFI B-20 guidelines or US conventional lender standards. Enter your income, monthly debts, down payment, and the calculator applies the correct stress test and debt-service ratios to your specific situation.

Canadian buyers must pass the OSFI stress test regardless of down payment size. You qualify at the higher of your contract rate plus 2%, or 5.25% — whichever is greater. At a 4.20% contract rate, you must demonstrate you can afford payments at 6.20%. This rule ensures borrowers have a buffer if rates rise at renewal.

Two ratios govern Canadian mortgage qualification. The Gross Debt Service (GDS) ratio — housing costs divided by gross monthly income — must stay below 39%. The Total Debt Service (TDS) ratio adds all other monthly debts and must stay below 44%. US lenders use front-end (28%) and back-end (36%) DTI ratios instead, which function similarly but are applied differently in underwriting.

If your numbers are at the edge of qualifying, three levers can help: increasing your down payment (reduces the loan, lowering the GDS ratio), reducing other monthly debts before applying (directly improves TDS/back-end), or extending the amortization period — noting that Canada limits insured mortgages to 25 years. This calculator models all three adjustments in real time.

Key terms

Frequently asked questions

Does the OSFI stress test apply if I put down 20% or more?
Yes. Since January 2018, the OSFI stress test applies to all federally regulated lenders regardless of down payment size. Even with a 30% down payment, you must qualify at the higher of your contracted rate plus 2% or 5.25%. Some credit unions (provincially regulated) may apply different rules, but the majority of Canadian lenders follow OSFI guidelines.
What counts toward the GDS ratio in Canada?
The GDS ratio includes: monthly mortgage payment (principal + interest), monthly property tax, monthly heating costs (OSFI uses a standard $150/month estimate if actual costs are unknown), and 50% of condo or strata fees if applicable. Car payments, student loans, and credit card minimums are not included in GDS — they are added when calculating the TDS ratio.
How much income do I need to buy a $700,000 home in Canada with 10% down?
With 10% down, your loan is $630,000 plus the 3.1% CMHC premium ($19,530) = $649,530. At 4.20% over 25 years, the monthly payment is approximately $3,500. Add $580 in property tax and $150 heating = $4,230 total housing cost. At a 39% GDS limit, you need approximately $130,000/year gross income to qualify — and the stress test at 6.20% typically requires $145,000+ income at current rates.
Can co-borrower income help me qualify for a larger mortgage?
Yes. Both borrowers' gross annual incomes are combined to calculate qualifying ratios. The co-borrower's debts are also included in the TDS calculation. Adding a co-borrower with income and low debt can substantially increase the maximum purchase price — use the co-borrower income field in this calculator to model the impact.
What is the minimum down payment in Canada in 2026?
For homes priced up to $500,000: minimum 5%. For homes between $500,000 and $999,999: 5% on the first $500,000 plus 10% on the remainder. For homes at $1,000,000 or more: minimum 20% (CMHC does not insure mortgages above $999,999). On a $700,000 home, the minimum down payment is $45,000.

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