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Mortgage Affordability Calculator

How much home can you afford?

Enter your income, debts and down payment. You will see the highest home price a lender would likely approve, using the same stress test and debt limits Canadian lenders use.

  • Educational estimate
  • No email or phone number needed
  • Canadian mortgage rules
See what I can afford
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You could afford up to$0

The figures below are examples. Replace them with your own.

How we calculate what you can afford

  • The stress test: lenders check that you could still pay at a higher rate than the one you are offered. They use your rate plus 2%, or 5.25% if that is higher. You still pay your own rate.
  • Housing costs limit: your mortgage payment at the stress test rate, plus property tax, heating and half of any strata fees, can be up to 39% of your income before tax.
  • Total debt limit: those housing costs plus your other monthly debt payments can be up to 44% of your income before tax.
  • Maximum mortgage: the largest mortgage whose stress test payment fits inside both limits. Interest is compounded twice a year, as it is on Canadian fixed-rate mortgages.
  • Down payment rules: you need at least 5% of the first $500,000 of the price and 10% of the rest, for homes under $1.5 million. Homes at $1.5 million or more need 20%.
  • Mortgage default insurance: with less than 20% down, a premium of 2.80% to 4.00% of the mortgage is added to what you borrow, plus 0.20% when the amortization is longer than 25 years. The maximum price allows for it.
  • Rounding: the maximum price is rounded down to the nearest $1,000.

What a lender also looks at

  • Your credit history: a lower score can mean a lower limit or a higher rate.
  • How you earn your income: self-employed, commission and contract income is usually averaged over two years.
  • Their own limits: some lenders use stricter limits than 39% and 44%, and some allow more with strong credit and 20% down.
  • Closing costs: keep cash aside for legal fees, property transfer tax and moving. A common guide is 1.5% of the price.
  • What you are comfortable paying: the most a lender will approve is not always what fits your life. Try the mortgage payment calculator to see the payment at different prices.

Keep planning your home

Mortgage Payment CalculatorWhat a home at that price costs each month.Check the payment Mortgage Protection CalculatorThe coverage that keeps the payments going.Protect your mortgage BC Property Transfer Tax CalculatorThe tax due on closing day, with exemptions.Check your closing tax

This calculator gives an estimate for education only. It is not advice, a pre-approval, a mortgage approval or an offer to lend. Vansure Insurance Services Ltd. is a licensed insurance brokerage and does not arrange or provide mortgages. What you can borrow depends on your lender, your credit and the rules in force when you apply. Lending rules and mortgage default insurance premiums can change.

Buying a home? Protect the mortgage too.

Start a mortgage protection quote online, then review it with a licensed BC broker.

Protect This MortgageTalk to a Broker

Common questions

Lenders must check that you could still afford the mortgage at a higher rate: the greater of 5.25% or your own rate plus 2%. The calculator uses that higher rate to work out what you qualify for.

Two ratios. Housing costs (mortgage payment, property tax, heat and half of strata fees) should be no more than about 39% of your income before tax. Housing costs plus all other debt payments should be no more than about 44%.

At least 5% of the first $500,000 of the price and 10% of the rest, for homes under $1.5 million. Homes at $1.5 million or more need at least 20%.