How Much Home Can You Truly Afford?

Most affordability calculators skip the two things that actually decide your file: the federal stress test and the CMHC insurance premium. This one includes both — the same limits a lender applies, so the price below is the one you can actually be approved for.

Estimate only — not a pre-approval or an offer. Qualification uses the federal stress test: the greater of your contract rate + 2% or 5.25% (OSFI / federal mortgage-insurance rules; checked October 29, 2026), the 39% gross debt service (GDS) and 44% total debt service (TDS) limits used for insured mortgages, and the standard Canadian mortgage formula (nominal rate compounded semi-annually). With less than 20% down, mortgage default insurance (CMHC or another insurer) is required and the premium is added to your mortgage: 2.80% of the loan at 80.01–85% loan-to-value, 3.10% at 85.01–90%, and 4.00% at 90.01–95%. Minimum down payment: 5% of the first $500,000 of the price plus 10% of the portion above $500,000 (homes priced at $1.5 million or more require 20% down and are uninsured). A 30-year amortization is available to first-time buyers and on newly built homes; otherwise insured mortgages are capped at 25 years. Lenders also weigh credit, property type and other factors — a real pre-approval runs your actual file.