Canada · CAD · Mortgage & qualification
Canada Home Affordability
Solve a purchase budget using down payment, insurance, debt-service budgets and actual housing costs.
Reference scope documented 2026-10-25: standard qualifying rate max(contract + 2 percentage points, 5.25%); purchase insurance cap below CAD 1.5 million; 30-year insured scenarios require confirmed eligibility. Enter current personal quotes; these rules do not establish approval. CMHC source · OSFI source.
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Educational estimate, not financial advice. Disclaimer · Methodology · Corrections.
How this estimate works
Available qualifying P&I is the smaller of the GDS and TDS allowances, after entered tax, heat, half condo fees and ground rent. A bounded search includes financed CMHC premiums, current minimum down payment and the qualifying rate when solving for price.
Assumptions and limits
- The cash down amount must be available after closing costs and any premium tax; those cash reserves are not automatically deducted.
- The 39/44 defaults are editable planning ceilings. A result within them does not prove lender or CMHC eligibility.
- Insured amortization above 25 years requires confirmed eligibility; otherwise the modeled price is limited to the uninsured deposit case.
- Amounts and outputs are CAD. Enter actual contract terms and current quotes; no mortgage rate is inferred from a credit score or Bank of Canada policy rate.
- A constant-rate amortization beyond the current mortgage term is a planning projection. Rates may change at renewal; lender fees, eligibility, appraisal and contract rounding can differ.
References and further reading
Worked Canada example: Canada Home Affordability
This is a hypothetical arithmetic example in CAD, not a current lender quote, market observation or borrower record. The same calculator model produces the figures below. Its input assumptions are shown so that you can reproduce or change the scenario.
| Assumed input | Illustration value |
|---|---|
| Annual gross qualifying income (CAD) | 150,000 |
| Cash down payment (CAD) | 70,000 |
| Contract annual rate (%) | 3.99 |
| Amortization remaining (years) | 25 |
| Contract compounding | Semiannual — typical Canadian fixed-rate convention |
| 30-year insured first-buyer/new-build eligibility confirmed? | No / not confirmed |
| Annual property tax (CAD) | 3,000 |
| Monthly heating (CAD) | 120 |
| Full monthly condominium fee (CAD) | 0 |
| Monthly ground / site rent (CAD) | 0 |
| Other monthly debt payments (CAD) | 0 |
| Housing-ratio planning ceiling (%) | 39 |
| Total-debt planning ceiling (%) | 44 |
| Calculated measure | Result |
|---|---|
| Purchase-price ceiling in this budget model | CA$747,666.95 |
| Principal including modeled insurance | CA$704,773.63 |
| Modeled CMHC premium | CA$27,106.68 |
| Monthly qualifying P&I allowance | CA$4,505.00 |
| Contract-rate monthly P&I | CA$3,703.43 |
| Qualifying monthly P&I | CA$4,505.00 |
Amounts use unrounded intermediate arithmetic and are rounded only for display. Selecting different costs, rates, payment dates or terms changes the result; no illustration value is prefilled into your personal financial fields.