House Affordability Calculator Canada
Find the maximum home price that fits your budget using Canadian mortgage norms — a 25-year amortization, an adjustable debt-ratio cap, and all figures in CAD.
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How It Works in Canada
The calculator takes about 80% of your allowed monthly housing budget for principal and interest, leaving room for property tax and heating — both of which Canadian lenders count inside the housing-cost portion of your debt-service ratios. The mortgage amount is the present value of that principal-and-interest stream over your amortization. Canadian fixed mortgage rates are quoted as nominal rates compounded semi-annually, so this monthly-compounding estimate is a close approximation rather than an exact lender quote.
Estimates only — not financial advice. A lender pre-approval applies the mortgage stress test and your full financial picture.
Frequently Asked Questions
How do Canadian lenders decide how much I can afford?
Lenders look at debt-service ratios — one for housing costs and one for all your debts — plus the federal mortgage stress test. This calculator uses a single adjustable debt-ratio cap as a simpler planning stand-in.
Why is the default amortization 25 years?
Twenty-five years is the standard maximum for insured Canadian mortgages and the most common amortization lenders quote, so it gives a realistic baseline for budgeting.
Why does the calculator use 80% of my housing budget for the mortgage itself?
The remaining 20% approximates property tax and heating, which Canadian lenders include in your housing costs. Keeping that buffer means your estimate won't overshoot what a lender allows.
Does this replace a mortgage pre-approval?
No. It's a planning estimate to set your price range. A real pre-approval applies the stress test, your credit history and the property details, and gives you a rate hold.