A 'how much can I borrow' calculator shows the maximum mortgage or loan a lender will approve based on your income, debts, down payment, and the current stress test rate. The Canadian mortgage stress test requires you to qualify at your contract rate + 2% (or 5.25%, whichever is higher) — so a 5% rate means you must qualify at 7.25%.
Enter your gross annual income, monthly debts (car loans, student loans, credit cards minimums), down payment, and the expected mortgage rate. We'll show your GDS/TDS ratios, the maximum home price, and the maximum loan amount. Includes 2026 Canadian stress test rules and 13 provincial CMHC/Genworth premium calculations.
Use the 28/36 rule: housing (PITI) should not exceed 28% of gross monthly income, total debt should not exceed 36%. On $80K income, max housing payment is $1,867/mo, max total debt $2,400/mo. With $300/mo other debts, max mortgage PITI is $2,100/mo. At 6.5% interest over 30 years, that's ~$370K loan amount.
Lenders use two ratios: GDS (Gross Debt Service) — your housing costs (mortgage + property tax + heating + 50% condo fees) should be ≤ 32% of gross income. TDS (Total Debt Service) — all debts (housing + car loans + student loans + credit card minimums) should be ≤ 40% of gross income.
The stress test requires you to qualify for your mortgage at the higher of (your contract rate + 2%) or 5.25%. So if you're getting a 4.5% rate, you must qualify at 6.5%. If rates are above 3.25%, you use contract rate + 2%. This rule applies to all CMHC-insured mortgages.
On $100,000 gross with no other debts, you can typically qualify for a $450,000-550,000 mortgage (depending on rate, taxes, and down payment). With $20K down, that's a $470-570K home. With existing debts, the number drops significantly.
In Canada, you need at least 620 for a CMHC-insured mortgage (most lenders want 680+ for the best rates). Below 600, you'll need a private lender (rates 8-12%). 720+ gets you the best rates and products.
No — bank approval is the maximum, not what you should borrow. Most financial planners recommend borrowing 80-90% of your max approved amount, to leave room for emergencies, lifestyle inflation, and rate increases. The stress test gives a buffer, but only a small one.