How much mortgage can I afford in Ontario?

Lenders qualify you at the stress-test rate (the greater of your contract rate plus 2% or 5.25%) and cap housing costs at roughly 39% of gross income (GDS) and total debts at 44% (TDS). Your maximum purchase price is the mortgage those limits support plus your down payment.

What is the mortgage stress test in 2026?

Federally regulated lenders must qualify borrowers at the greater of the mortgage contract rate plus 2% or 5.25%, per OSFI's minimum qualifying rate. You pay your contract rate, but you must prove you could afford the higher one.

What is the minimum down payment in Canada?

5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $1.5 million, and 20% for homes above $1.5 million. Below 20% down, mortgage default insurance (CMHC) is required and added to the loan.

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Affordability
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How much home can you actually afford in Ontario? Stress test, GDS/TDS limits and CMHC insurance — all applied for you.

Gross Annual Household Income ($)

Monthly Debt Payments — loans, leases, cards ($)

Down Payment Available ($)

Mortgage Contract Rate (%)

Amortization (years)

Est. Monthly Property Tax ($)

Est. Monthly Heating ($)

Estimated Maximum Purchase Price

Stress-Test Rate Used

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Max Mortgage

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Monthly Payment (your rate)

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CMHC Premium (if <20% down)

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Estimate only — not financial, lending, tax or investment advice. Figures use standard formulas and the assumptions you enter; your lender, accountant or lawyer will produce exact numbers for your situation. E. & O.E. Uses the federal stress test (greater of your rate + 2% or 5.25%), GDS 39% / TDS 44% insured limits, minimum down payment rules (5% of the first $500,000, 10% of the remainder to $1.5M, 20% above $1.5M) and CMHC premium tiers. Lenders apply their own criteria.

How this affordability estimate works

Canadian lenders qualify you at the stress-test rate — the greater of your contract rate plus 2% or 5.25% — not the rate you’ll actually pay. They then cap your housing costs at roughly 39% of gross income (GDS) and your housing costs plus all other debts at roughly 44% (TDS). This tool applies both tests, takes the lower answer, and works backwards to the biggest mortgage those payments support.

If your down payment is under 20%, mortgage default insurance is added to the loan (0.60%–4.00% depending on your down payment tier), and insured purchases are capped at $1.5 million. Once you have your range, see what the payment really looks like with the mortgage payment calculator and budget your land transfer tax on top.

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Mortgage Affordability Calculator — How Much Home Can You Afford? (Ontario 2026)

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Affordability
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