Mortgage Affordability Calculator Canada 2026: How Much House Can You Afford?
With $120,000 of household income and $50,000 down, at 4.34% tested at 6.34%. The limit you hit first: housing costs reach 39% of income (GDS).
- Home price$547,600
- Down payment (9.1%)−$50,000
- CMHC premium, added to the mortgage$19,904.00
- Mortgage$517,504
- Your payment at 4.34%, 25 years$2,818.39
- Payment the lender tests at 6.34%$3,416.33
- Monthly housing costs (payment, tax, heat)$3,301.73
At this price, tested at 6.34%
- Maximum mortgage
- $517,504
- Insured, 90.9% loan-to-value, 25-year amortization.
- What limits you
- GDS
- Housing costs reach 39% of income (GDS).
- Mortgage to income
- 4.31x
- mortgage to income. Banks watch uninsured loans above 4.5x.
- Cash you need
- $50,000
- down payment, plus closing costs, which depend mostly on land transfer tax where you buy.
How the rate and your down payment change it
| Your rate | Tested at | Maximum price | Your payment |
|---|---|---|---|
| 3.34% | 5.34% | $596,500 | $2,789.87 |
| 3.84% | 5.84% | $571,100 | $2,803.92 |
| 4.34% | 6.34% | $547,600 | $2,818.39 |
| 4.84% | 6.84% | $525,700 | $2,832.47 |
| 5.34% | 7.34% | $505,300 | $2,846.33 |
| Down payment | Maximum price | What limits you |
|---|---|---|
| $25,000 | $500,000 | Down payment |
| $50,000 | $547,600 | GDS |
| $75,000 | $576,900 | GDS |
| $100,000 | $603,400 | GDS |
| $150,000 | $667,500 | GDS |
Next: stress test a specific home, add up the closing costs, or see your take-home pay.
Turn on JavaScript to change the numbers. The figures shown are for $120,000 of household income and $50,000 down.
The short answer
With $120,000 of household income and $50,000 saved, you can afford a home of about $547,600 in 2026, at a 4.34% rate tested at 6.34%, with $4,000 of property tax, $150 a month for heating and no other debts. That is a mortgage of $517,504 including the CMHC premium and a payment of $2,818.39 a month. The rule that stops you is the 39% limit on housing costs.
The calculator finds the highest price that passes every rule at once: the stress test, the 39% and 44% debt limits, the minimum down payment and the $1.5 million cap on insured mortgages. It names the rule that limits you, so you know whether more income, more savings or less debt would help most.
The four rules that set your budget
- The stress test. Lenders test your payment at the greater of your rate plus 2% or 5.25%.
- Gross debt service, 39%. The tested payment, property tax, heating and half of condo fees must stay within 39% of your gross income.
- Total debt service, 44%. Add your other debt payments, including 3% of card and line of credit balances, and the total must stay within 44%.
- The minimum down payment. 5% of the first $500,000 and 10% of the rest, and 20% from $1.5 million. With $50,000 saved you cannot buy above $750,000, whatever your income.
Maximum price by income and down payment
| Household income | $25,000 down | $50,000 down | $100,000 down |
|---|---|---|---|
| $60,000 | $240,400 | $266,100 | $322,100 |
| $80,000 | $333,300 | $360,900 | $420,600 |
| $100,000 | $427,900 | $456,400 | $507,600 |
| $120,000 | $500,000* | $547,600 | $603,400 |
| $150,000 | $500,000* | $689,600 | $745,200 |
| $200,000 | $500,000* | $750,000* | $983,900 |
An asterisk marks prices limited by the minimum down payment rather than by income. Property tax is held at $4,000 for comparison; it rises with price in most cities.
What lowers the amount you can borrow
| Change | Maximum price | Difference |
|---|---|---|
| $800 a month car payment | $503,900 | −$43,700 |
| $20,000 credit card balance (counted as $600 a month) | $533,000 | −$14,600 |
| $500 a month condo fees | $511,200 | −$36,400 |
Debts below $500 a month make no difference here, because at this income the 39% housing limit binds before the 44% total limit. Condo fees are different: half of them count toward the 39% limit directly.
Affordable is not the same as comfortable
The ratios use gross income and ignore income tax, child care, car costs, savings and maintenance. Before you settle on a price, check your take-home pay with our income tax calculator and build a monthly budget around the real payment, not the tested one. Remember the cash beyond your down payment too: land transfer tax, legal fees and the other closing costs.
Frequently asked questions
How much house can I afford on $120,000 a year?
About $547,600 with $50,000 down at a 4.34% rate, $4,000 of property tax, $150 a month for heating and no other debts. That is a mortgage of about $517,504 including the CMHC premium, with a payment of $2,818.39 a month. The 39% housing cost limit, tested at 6.34%, is what stops you.
How do lenders decide how much I can borrow?
They work out the payment at the stress test rate, the greater of your rate plus 2% or 5.25%, add property tax, heating and half of condo fees, and check that this stays within 39% of your gross income. With your other debts added, it must stay within 44%. Your down payment must also meet the minimum for the price.
How much does debt reduce what I can afford?
Other debts only start to cut your budget once they use up the gap between the 39% and 44% limits, which is $500 a month on $120,000 of income. Beyond that every dollar counts: in the example above an $800 car payment lowers the maximum price from $547,600 to about $503,900, and a $20,000 credit card balance, counted as $600 a month, lowers it to about $533,000.
What is the minimum down payment in Canada?
5% of the first $500,000, plus 10% of the part of the price between $500,000 and $1.5 million. Homes of $1.5 million or more need 20% down and cannot be insured. On a $700,000 home the minimum is $45,000.
Do condo fees count when I qualify?
Half of them count toward both ratios. With $500 a month in condo fees, the maximum price in the example drops from $547,600 to about $511,200.
Is the maximum what I should spend?
Not necessarily. The ratios leave out your income tax, child care, transportation and savings. Many buyers aim below the limit so a rate rise at renewal or a repair does not strain the budget.
- Minimum qualifying rate for uninsured mortgages, OSFI, modified January 29, 2026, and loan-to-income limits for uninsured mortgage portfolios, modified January 29, 2026. Checked November 2, 2026.
- Calculating GDS / TDS and the debt service calculator, CMHC (39% and 44% limits, qualifying rate, 50% of condo fees, 3% of revolving balances). Checked November 2, 2026.
- Down payment, Financial Consumer Agency of Canada, modified October 15, 2025; Boldest mortgage reforms in decades come into force today, Finance Canada, December 2024 ($1.5 million insured cap and 30-year insured amortizations for first-time buyers and new builds from December 15, 2024). Checked November 2, 2026.
- CMHC premium rates by loan-to-value, unchanged since 2017, plus 0.20% for amortizations over 25 years, as used in our CMHC insurance guide. Default rate: best advertised 5-year fixed on October 26, 2026. Default price: CREA national average, September 2026.
- Method: the calculator searches for the highest price that passes every rule, to the dollar, and rounds down to the nearest $100. It was built twice, in the browser code and in a separate Python program, and both agree on 1,500 test cases. Nothing you enter is sent or stored.
General information, not financial or mortgage advice. Lenders apply their own credit, income and property rules, and many set limits below the maximums shown. Gizly is not a lender or broker, is not affiliated with any government, and has no affiliate relationships. See how we check the numbers and our disclosure.