Mortgage Payment Calculator
See your payment at any frequency, the interest you pay over the term, and the balance left at maturity.
Open calculatorAffordability Calculator
Ontario - License #11000073 · Nova Scotia - Licence #2023-3000786 · Mortgage Outlet Inc #12628
How much mortgage can you actually afford?
This calculator uses the same limits Ontario lenders apply: 39% gross debt service, 44% total debt service and the federal stress-test rate. The number it returns is the one a lender is likely to arrive at.
How much mortgage can I afford?
We apply the same limits lenders use: 39% gross debt service, 44% total debt service, and the federal stress test rate.
Estimated maximum price
$702,246
- Mortgage amount
- $598,549
- Default insurance added
- $16,303
- Qualifying (stress test) rate
- 6.29%
- Payment at your contract rate
- $3,243.29
- Max shelter payment allowed
- $3,933
- Limiting ratio
- TDS 44%
Estimate only. Lenders also review credit, income type, down payment source and the property itself. A pre-approval gives you the real number.
How lenders decide
Gross debt service is your mortgage payment, property tax, heat and half of any condo fee, measured against gross income. Total debt service adds every other obligation that shows on your credit bureau: car loans and leases, student loans, and the minimum payment on cards and lines of credit.
Lenders test both ratios at the stress-test rate, then take the lower answer. That is why a small monthly obligation can cost you a surprising amount of purchase price.
Ways to raise the number
- Pay out or reduce a vehicle or consumer loan before applying
- Extend the amortisation to 30 years where the program allows it
- Add a qualified co-borrower or documented secondary income
- Increase the down payment past 20% to avoid insurance limits
- Count legal secondary-suite rental income where a lender permits it
- How much mortgage can I afford in Ontario?
- Lenders cap your housing costs at about 39 percent of gross income (GDS) and your total debt payments at about 44 percent (TDS), qualified at the greater of your rate plus two percent or 5.25 percent. Two households with identical incomes can qualify very differently depending on car payments and credit lines.
- What is the mortgage stress test?
- You must be able to afford the payment at the higher of your contract rate plus two percent or 5.25 percent, even though you pay the lower contract rate. It reduces the maximum mortgage by roughly 15 to 20 percent compared to qualifying at the contract rate.
- Do car payments really reduce how much house I can buy?
- Substantially. As a rough rule, every $500 of monthly debt payment reduces your maximum mortgage by roughly $80,000 to $100,000 at current rates. Paying off or refinancing a vehicle before you apply is often the single fastest way to increase your budget.
- Is this the same as a pre-approval?
- No. This is an estimate based on the numbers you enter. A pre-approval is a lender decision on reviewed documents with a rate held while you shop, which is what sellers and agents take seriously.
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