How Much Can You Afford?
Start here. Plug in your real income and see your maximum purchase price using Canadian GDS (39%) and TDS (44%) lender ratios.
Qualifying rate auto-updates from your contract rate below (greater of contract + 2% or 5.25%, per Canadian stress test rules).
This is a planning estimate, not a pre-approval. Property tax is estimated at 1.0% of home price annually. Actual approval depends on credit, employment, lender, and the property itself. For a real number, complete a full application with The Mortgage Project.
My Scenarios
Save up to 5 named scenarios (e.g. "dream place", "realistic", "stretch") and flip between them. Or copy a shareable link that loads every input exactly as it is right now, perfect for texting to your partner or your broker.
Run a Specific Scenario
Now try a real home price. See your monthly, bi-weekly, and accelerated bi-weekly payments.
Year-by-year balance, interest paid, and principal paid (based on monthly payment over your full amortization).
| Year | Payment | Interest | Principal | Balance |
|---|
CMHC insurance is automatically added when your down payment is less than 20%. Insurance premiums: 5–9.99% down = 4.00%, 10–14.99% = 3.10%, 15–19.99% = 2.80%. Minimum down payment in Canada: 5% on first $500K + 10% on portion above. Calculations are estimates only and not an offer of credit.
Rent vs Buy
The question everyone asks. We compare the total cost of renting versus buying the same place over the years you plan to stay, including the equity you'd build, opportunity cost on your down payment, and all the hidden ownership costs.
Buying total includes your down payment, mortgage interest, property tax (1%/yr), maintenance, CMHC insurance (if applicable), MINUS your home equity at sale (price appreciation + principal paid). Renting total includes all rent paid PLUS the opportunity cost of NOT investing your down payment. Both are pre-tax estimates; your actual numbers depend on lender, location, and market conditions.
Closing Costs Calculator
Estimate the one-time costs to close on your home.
Note: Toronto is the only city in Ontario with a Municipal Land Transfer Tax. All other Ontario cities pay only the Provincial LTT.
Ontario Land Transfer Tax: 0.5% up to $55K, 1% to $250K, 1.5% to $400K, 2% to $2M, 2.5% above $2M. Ontario FTHB rebate up to $4,000. Toronto Municipal LTT brackets mirror provincial up to $400K then 2% to $2M, 2.5% to $3M, 3.5% to $4M, 4.5% to $5M, 5.5% to $10M, 6.5% to $20M, 7.5% above. Toronto FTHB rebate up to $4,475. Verify current rates with your lawyer.
Cash to Close: Your Closing-Day Checklist
Two weeks before closing, your lawyer will tell you exactly how much to wire. Use this to know that number now, and to walk into your appointment with nothing missed.
CMHC premium is auto-calculated from your scenario above. Ontario charges 8% PST on the CMHC premium, payable at closing (the premium itself rolls into your mortgage).
This is an estimate to help you plan, not a final statement of adjustments. Your lawyer will issue a "Statement of Adjustments" 1, 2 weeks before closing with the exact wire amount. Common surprises that move the number: utility prepayments by the seller, condo status certificate fees, mortgage discharge fees on the seller's side, and any holdbacks. Always confirm the wire amount with your lawyer in writing before sending money.
Lifestyle Affordability
It's not just about whether the bank says yes, it's about whether your life still feels like yours after the mortgage. Build your real monthly picture below. Your mortgage payment auto-fills from the calculator.
Income (monthly, after tax)
Housing
Living
Debts & Savings
Lifestyle
Down Payment Tracker (FHSA + HBP)
Track your tax-advantaged down payment savings. The FHSA lets you save up to $40,000 tax-free, and the HBP lets you withdraw up to $60,000 from your RRSP.
FHSA progress
HBP (RRSP) progress
Other cash savings
FHSA: $8,000/year, $40,000 lifetime contribution limit. HBP: $60,000 max withdrawal (per person), repayable over 15 years starting in year 2 after withdrawal. Both can be combined for the same first home purchase.
Quick Guides
Short, no-jargon explanations of the things that trip people up most.
What Is the Mortgage Stress Test?
Every federally regulated lender in Canada must qualify you at the higher of your contract rate + 2%, or 5.25% (the benchmark floor). This is called the stress test, and it exists so you can still afford your home if rates rise.
Example: If your contract rate is 3.7%, you're qualified at 5.7%. That means your GDS and TDS ratios are tested against a payment calculated at 5.7%, even though you'll actually pay 3.7%.
The stress test doesn't change your actual payment, it only limits how much you can borrow. It applies to purchases, refinances, and switches (with some exceptions for uninsured straight switches).
How CMHC Mortgage Insurance Works
If your down payment is less than 20% of the purchase price, you're required to buy mortgage default insurance (commonly called CMHC insurance, though Sagen and Canada Guaranty also offer it).
Premium rates (% of mortgage amount):
- 5% to 9.99% down: 4.00%
- 10% to 14.99% down: 3.10%
- 15% to 19.99% down: 2.80%
The premium is added to your mortgage balance (you don't pay it out of pocket), but Ontario charges 8% PST on the premium amount, payable at closing. Maximum insurable purchase price is $1.5 million.
Ontario Land Transfer Tax Explained
Ontario's LTT is a one-time tax paid on closing day, calculated on a progressive bracket system:
- 0.5% on the first $55,000
- 1.0% from $55,001 to $250,000
- 1.5% from $250,001 to $400,000
- 2.0% from $400,001 to $2,000,000
- 2.5% above $2,000,000
If you're buying in Toronto, the city adds its own Municipal LTT on top (similar brackets). First-time buyers get rebates: up to $4,000 provincial and up to $4,475 in Toronto.
What Happens on Closing Day
Closing day is when ownership legally transfers to you. Here's the typical timeline:
- 1–2 weeks before: Your lawyer sends a Statement of Adjustments showing the exact amount to wire.
- A few days before: You wire the funds to your lawyer's trust account.
- Morning of: Your lawyer registers the deed, your lender advances the mortgage funds, and the seller's lawyer receives payment.
- Afternoon: You get the keys (usually by 5–6 PM, though delays happen).
Common surprises: utility prepayments by the seller, last-minute holdbacks for repairs, or delays if the seller's discharge isn't ready. Your lawyer handles all of this.
GDS & TDS Ratios: The Bank's Affordability Rules
Lenders use two ratios to determine how much they'll lend you:
GDS (Gross Debt Service): Your housing costs (mortgage + property tax + heating + 50% of condo fees) divided by gross income. Maximum: 39%.
TDS (Total Debt Service): Housing costs PLUS all other debt payments (car loans, credit cards, student loans, lines of credit) divided by gross income. Maximum: 44%.
Both ratios are calculated using the stress-test rate, not your actual contract rate. If either ratio exceeds its limit, the lender reduces your maximum mortgage until both pass.
From The Mortgage Project
Honest, opinionated reads from Rebecca on the things homebuyers actually need to know.
First-Time Buyer Resources
Government programs and incentives designed specifically for first-time buyers.
Trusted Resources
Official sources, regulators, and tools from the people who set the rules.
Glossary: Mortgage Terms Decoded
Swipe through to explore common mortgage terms and what they mean.
Rebecca Blaha
You've run the numbers, now let's make it real. The next step is a proper pre-approval: it's free, takes just a few minutes, and tells you exactly what you qualify for so you can shop with confidence.
About The Mortgage Project
We were created to make home financing feel less overwhelming and more empowering, especially for homebuyers at every stage. We believe your mortgage isn't just a transaction; it's the foundation of your financial future. Our approach is built on clear education, honest numbers, and strategies that fit your life today and the life you're building for tomorrow.
Get the App on Your Phone
Scan this QR code with your phone's camera to open the app instantly. Then follow the quick prompt to add it to your home screen, it works just like a regular app, no app store needed.
iPhone: Tap the Share icon (box with arrow), then "Add to Home Screen."
Android: Tap the menu (three dots), then "Install app."
Your Current Home
Start here. How much equity have you built up?
What You'll Walk Away With
After selling costs, here is what you can expect in your pocket. Sale price auto-fills from Step 1.
Mortgage penalties depend on your lender and product type (fixed vs. variable, open vs. closed). Ask your lender for an exact payout statement before listing.
What Can You Afford Next?
Your proceeds from Step 2 flow in automatically. Add any extra savings and your income details to see your maximum purchase price.
This calculator uses the Canadian stress test (qualifying rate = greater of your contract rate + 2% or 5.25%). If you put down 20% or more, no mortgage insurance is required. These are estimates only and subject to lender approval.
