BUYERS · BEFORE YOU START SHOPPING
How much mortgage can you actually qualify for?
There are two answers, and the difference between them is where people get into trouble. One is what a lender will approve. The other is what you could carry without it running your life.
The house always wins. Make sure it's yours.
Purchase Price Affordability Calculator
Add your details for an estimate of what a lender would approve — and what you could comfortably carry.
How this is calculated. Uses standard Canadian debt service ratios — a maximum of 39% gross debt service and 44% total debt service — with payments stress-tested at the greater of your rate plus 2% or 5.25%, as lenders are required to do. Includes $100/month heating and half your condo fees, per lender convention, and applies current CMHC premium tiers and minimum down payment rules. The "comfortable" figure uses the traditional 32% / 40% benchmark. These are estimates only, not a pre-approval. Mortgage rules, debt service ratios, the qualifying rate, CMHC premium tiers and minimum down payment rules change over time, and lenders apply them with discretion. Only a lender can approve you. Speak with a licensed mortgage professional before making an offer.
What a lender is actually doing
It's less mysterious than it looks. Lenders run two ratios and stress-test the result.
Gross Debt Service (GDS) is your housing costs — mortgage payment, property tax, heating, and half your condo fees — as a share of gross income. The standard ceiling is 39%.
Total Debt Service (TDS) adds every other monthly obligation: car payments, student loans, lines of credit, and roughly 3% of any credit card balance. The ceiling is 44%.
Then comes the stress test. You don't qualify at the rate you'd pay. You qualify at the greater of your contract rate plus two percentage points, or 5.25% — whichever is higher. So at a 3.65% rate you're being assessed as though you're paying 5.65%. That's roughly a 20% reduction in what you can borrow, and it's the single biggest reason people's approvals come in below their own arithmetic.
Why the stress test exists: your rate is fixed for a term, not for the life of the loan. In five years you renew at whatever rates are then. The test is asking whether you'd survive that increase. It's an inconvenience when you're shopping and a mercy at renewal.
The number I'd actually pay attention to
Not the maximum. The gap.
When someone tells me they were approved for $850,000, my first question is what they'd be approved for if they wanted to sleep at night. It's usually $120,000 to $180,000 lower, and that difference is the entire margin between a home that works and one that owns you.
The people I've seen regret buying almost never regret the property. They regret the payment. Buying at your ceiling means every rate renewal is a threat, every special assessment is a crisis, and a few months between jobs becomes a forced sale — which is how people actually lose money in real estate.
Four things that affect your number
01 — Clear your debts
Every $100/month of debt payments cuts roughly $18,000–$20,000 off what you can borrow. Paying off a car loan usually beats saving the same amount.
02 — Stretch your amortization
30 years instead of 25 lowers the qualifying payment and raises your ceiling. It also costs much more interest overall but it doesn’t stop you from making extra payments when you can.
03 — Add a co-buyer
Extra income can change everything — but a co-buyer who already owns property can cost you the first-time buyer rebates. Check before you add them to title.
04 — Grow your down payment
The slowest lever, and past 20% it stops helping your ratios much. Below 20% it also removes the insurance premium. Useful, but rarely the fastest fix.
✅ Things that could raise it
A strong credit profile can open better rates, which raises your ceiling through the stress test.
Bonus or overtime income with a two-year track record can often be included.
Rental income from a basement suite or existing property, at lender-specific inclusion rates.
A gifted down payment from an immediate family member, with a signed gift letter.
Shopping the mortgage. Lenders apply the same rules differently. A broker checking several can meaningfully change the outcome.
❌ Things that could lower your approval
Credit score. Below roughly 680 and your options narrow; below 600 and you're likely looking at alternative lenders at higher rates.
Self-employment. Assessed on net income after write-offs, often averaged over two years. Frequently far lower than what you feel you earn.
Short employment history. Probation periods and recent job changes are a problem for most lenders.
Variable or commission income. Usually averaged, and often discounted.
Unsourced down payment. Lenders want 90 days of history on the funds. A large unexplained deposit causes delays.
Find out what a lender says.
I'll point you to a mortgage broker who'll give you a real pre-approval (I may receive a referral fee).
Former 6/49 Draws Manager
I managed hundreds of millions in jackpots. I don’t believe in luck—just smart decisions.
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Deep local expertise across buildings, markets, and price points.
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First-time buyers to experienced investors. I’m here for the long game, not the quick sale.
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My job is to help you buy the right property—and walk away from the wrong one.
