Gurvinder Nokwal REALTOR®

Affordability calculator

How much home can you afford?

Your maximum price from your income, debts and down payment - with the same limits and stress test the lenders use.

  • GDS and TDS limits
  • Includes the stress test
  • Mortgage insurance included

Car loans, student loans, lines of credit and 3% of credit card balances.

Amortization, years

Leave at 0 to estimate 1% of the price a year.

You could afford up to

$544,000

Limited by your debts: housing costs plus other debt payments can be at most 44% of your gross income (TDS).

Housing costs (GDS)38.96% of 39%
All debts (TDS)43.96% of 44%

The mortgage

Down payment
$60,000
Mortgage insurance
$15,004
Mortgage amount
$499,004
Qualifying rate
6.5%

Monthly, at your rate

Principal and interest
$2,762
Property tax
$453
Heating
$100
Total
$3,315
See homes up to $544,000 Get pre-approved: talk it through with me

Estimate only, not a mortgage approval or financial advice. Uses the insured-mortgage limits (39% GDS, 44% TDS), the stress test (your rate plus 2%, at least 5.25%), half of condo fees, and mortgage insurance added to the loan. Lenders also look at your credit, employment and the property.

Good to know.

Housing costs: 39%.

Your mortgage payment at the qualifying rate, property tax, heating and half of any condo fees can be at most 39% of your gross household income. That is the Gross Debt Service ratio (GDS).

All debts: 44%.

The same costs plus car loans, student loans, credit cards and lines of credit can be at most 44%. That is the Total Debt Service ratio (TDS). Paying down a car loan can raise your budget more than you would expect.

The stress test.

Lenders check both ratios at a higher rate than the one you pay: your rate plus 2%, or 5.25% if that is higher. Your actual payment is lower than the one you qualify with.

What to do next.

A number is a start. Here is how to turn it into a home.

Talk it through

Or call or text (519) 532-6005.

  1. Get pre-approved.

    A lender or mortgage broker checks your income, credit and debts and confirms your number. I can introduce you to people I trust.

  2. Search in your range.

    Look at homes up to your budget, save the ones you like and get an email when new ones come up.

  3. Leave some room.

    The maximum is a ceiling, not a target. Keep a cushion for closing costs, moving and the first repairs.

More tools.

Mortgage calculator Your payment, insurance and cash to close. Land transfer tax Ontario and Toronto, with first-time refunds. Closing costs The cash you need on closing day. Seller net proceeds What you keep after selling. What is my home worth? A free valuation from recent local sales.