Use this Canadian mortgage affordability calculator to estimate the home price and mortgage amount that may fit your monthly income and expenses. It is useful for early planning before you compare properties or speak with a lender.
Important: This is an estimate, not a mortgage pre-approval. The calculator uses a conservative 32% housing-cost guideline and does not model every lender’s qualification rule.
How to use this mortgage affordability calculator
Enter the figures that best describe your Canadian household budget. The calculator updates the estimate as you enter the required values.
- Enter your combined gross monthly income before income tax.
- Add monthly home expenses such as property taxes, heating, and condominium fees.
- Add other recurring monthly debts and obligations.
- Enter the percentage of the purchase price you expect to pay as a down payment.
- Enter an interest rate and the number of years you expect to take to repay the mortgage.
- Review the estimated purchase price, down payment, mortgage principal, and monthly payment.
What each input means
- Monthly income: your gross monthly income before tax. If you are applying with a partner, use the combined gross monthly income that you expect the lender to consider. Include regular support payments only when they are reliable and documentable.
- Monthly home expenses: estimated monthly property taxes, heating costs, and condominium fees for the home you are considering. Enter zero when an expense does not apply, but use realistic estimates when comparing homes.
- Other monthly expenses: recurring obligations such as car loans or leases, student loans, credit-card payments, personal lines of credit, and other regular debt payments.
- Down payment %: the percentage of the purchase price you plan to pay upfront. For example, an $80,000 down payment on a $400,000 home is 20%. This calculator does not determine the minimum down payment or mortgage-insurance requirement for a specific property.
- Interest rate %: the annual mortgage rate you want to test. Compare a lender quote with a current rate from our Canadian mortgage rates page, or use a higher rate for a more cautious estimate.
- Amortization: the number of years used to repay the mortgage principal. A mortgage term is the length of the current contract, while amortization is the longer repayment schedule. For example, a five-year term can have a 25-year amortization.
What the results mean
- Maximum purchase price: the estimated home price supported by the calculated mortgage principal and the down payment percentage you entered. It does not include closing costs, land-transfer taxes, legal fees, moving costs, or renovations.
- Down payment amount: the estimated dollar amount represented by your chosen down payment percentage at the calculated purchase price. It is not a lender’s minimum down payment recommendation.
- Mortgage principal: the estimated amount borrowed after applying the down payment percentage.
- Mortgage monthly payment: the estimated monthly principal-and-interest amount available within this model after the listed home and other expenses are deducted from 32% of gross monthly income. It is not a guaranteed lender payment or approval amount.
How the estimate is calculated
The model first estimates the monthly amount available for mortgage principal and interest:
32% of gross monthly income − monthly home expenses − other monthly expenses
It then converts that monthly amount into an estimated mortgage principal using the interest rate and amortization period. Finally, the principal is combined with the down payment percentage to estimate a maximum purchase price. The calculation uses the Canadian mortgage convention for semi-annual compounding.
Example: how much mortgage could fit the budget?
Suppose a household enters $10,000 gross monthly income, $500 in monthly home expenses, $1,000 in other monthly expenses, a 20% down payment, a 5% interest rate, and a 25-year amortization.
- Estimated mortgage payment available: $1,700.00 per month
- Estimated mortgage principal: $292,294.61
- Estimated down payment: $73,073.65
- Estimated maximum purchase price: $365,368.26
This example illustrates the calculator’s method. A lender may approve a different amount after reviewing income documents, credit history, debt-service ratios, the mortgage stress test, the property, and the source of the down payment.
Canadian mortgage affordability notes
- Use a rate and expense estimate that reflects the property you are considering. Small changes in the rate, amortization, condo fees, or debts can materially change the result.
- Keep money aside for closing costs and an emergency fund. They are not included in the maximum purchase price.
- Mortgage qualification in Canada can also depend on the federal mortgage stress test, total debt-service limits, credit history, employment, down payment source, property type, and lender policy.
- For a detailed payment schedule, balance after a mortgage term, and interest comparison, use our Canadian mortgage payment calculator.
Common questions
Is this a mortgage approval calculator?
No. It is a budgeting and affordability estimate. It does not issue a pre-qualification or guarantee that a lender will approve the amount shown.
Should I enter gross or take-home income?
Enter gross monthly income before income tax. For a joint application, use the combined income that can be verified and accepted by the lender.
What is the difference between amortization and mortgage term?
Amortization is the full repayment timeline, such as 25 years. The mortgage term is the shorter contract period for the current rate and conditions, such as five years. This calculator uses amortization in the affordability estimate; your actual term can be different.
Page reviewed August 24, 2026. Estimates are for general information only and should be checked with a qualified Canadian mortgage professional.
Also compare the results with our simple mortgage calculator and review current mortgage rates in Canada.