What is the GDS ratio in Canada?

The Gross Debt Service (GDS) ratio measures housing costs as a percentage of gross income. Canadian lenders typically require GDS below 32%, meaning mortgage payments, property tax, heating, and 50% of condo fees cannot exceed 32% of your gross income.

What is the TDS ratio for mortgages?

The Total Debt Service (TDS) ratio includes all debts: housing costs plus car loans, credit cards, and other obligations. Canadian lenders require TDS below 40% of gross income to qualify for a mortgage.

How much down payment do I need for a house in Canada?

Minimum down payment in Canada: 5% for homes under $500k, 10% for the portion between $500k-$1M, and 20% for homes over $1M. Down payments under 20% require CMHC mortgage default insurance.

What is the mortgage stress test?

The Canadian mortgage stress test requires you to qualify at the higher of your contract rate +2% or 5.25%. This ensures you can afford payments if rates increase.

Mortgage Affordability Calculator

Calculate how much home you can afford in Canada. Get instant results based on your income, debts, and down payment.

Your Information

Annual Gross Income

Monthly Debt Payments

Car loans, credit cards, student loans, etc.

Down Payment: 20%

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Interest Rate: 5.5%

3%5.5%8%

Amortization Period

GDS Ratio

Housing costs should not exceed 32% of your gross income (Gross Debt Service ratio).

TDS Ratio

Total debt payments should not exceed 40% of your gross income (Total Debt Service ratio).

CMHC Insurance

Down payments under 20% require mortgage default insurance (0.6% - 4.5% of loan).