Common Questions
Affordability Calculator FAQ
What are GDS and TDS ratios?
GDS (Gross Debt Service) is your housing costs (mortgage payment, property tax, heat, and half of any condo fees) as a percentage of your gross monthly income, capped at 39%. TDS (Total Debt Service) adds in all your other monthly debts, capped at 44%. Canadian lenders check both; whichever is more restrictive sets your real ceiling.
Why does this use a higher "qualifying rate" than my actual mortgage rate?
Federal rules (set by OSFI) require lenders to qualify you at the higher of your contract rate plus 2%, or 5.25%, even though you'll actually pay your real, lower contract rate. This "stress test" ensures you could still afford payments if rates rise. It's why your qualifying payment is higher than your real estimated payment.
Why might my down payment limit me before my income does?
Canada requires a minimum down payment that scales with price: 5% up to $500K, 10% on the portion between $500K–$1.5M, and 20% above $1.5M. If your available cash doesn't clear the minimum for a given price, that caps your maximum home price regardless of how much income you have.
Is this the exact number a bank will approve me for?
This is a close, rules-accurate estimate, but real approvals also weigh credit score, employment history, and lender-specific overlays. Use this as a solid starting range, then confirm your exact number with a mortgage broker before house-hunting seriously.