How much home can you actually afford?
A free home affordability calculator for Canada and the US, using the rules lenders actually apply: the stress test and GDS/TDS limits in Canada, DTI limits in the US. See your price, what closes the gap, and what it costs per month. No signup.
This sets the bank's lending cap: housing costs (mortgage, property tax, heat) may take up to 39% of gross income. Every $10,000 a year of income lets you carry about $325 a month more of housing.
What you could put down today; the plan's slider starts here, and pushing it higher is the saving plan. Every dollar you put down is a dollar you don't need to borrow, so it raises the price you can afford dollar for dollar. At 20% down you also stop paying mortgage insurance.
Car payments, loans, minimum card payments. They share your lending cap (44% of gross income including housing), so every $100 a month of debt payments costs you roughly $15,000 of home price.
Assumptionsdefaults you can edit ▾
This is the rate you actually pay: every $100,000 of mortgage costs $553 a month. The stress test doesn't change your payments; banks just check you could still afford them at 6.5% (your rate + 2%, never below 5.25%) before deciding your maximum loan. We apply both the same way.
More years spread the loan into smaller payments, so you qualify for a higher price but pay more total interest. 25 years is the Canadian standard, 30 the American.
Sits inside the same monthly cap as the mortgage payment, so higher-tax areas shrink your price. At $394,000 it takes $328 a month of your room. About 1% is a typical starting point.
Also counted inside the lending cap: every $100 a month here trades away roughly $15,000 of price. $150 a month is a reasonable start for most homes.
This is your ceiling with today's numbers. Drag the target up to test the home you actually want, or change your numbers on the left.
Test a bigger number: drag the target up and the green marks will show exactly what gets you there.
✓ $394,000 is your ceiling today. With $40,000 down it costs about $2,500/month all-in. The mortgage rules set this number; the levers above test what would raise it.
Could you actually carry $2,500 a month?
Finally reads your bank statement and shows whether that payment fits your real spending, and what would have to give.
Qualified at the stress test (6.5%) with GDS 39% / TDS 44% limits; payments compound semi-annually over 25 years. Under 20% down, the CMHC premium is financed into the loan. Minimum down payment: 5% to $500k, 10% on the part up to $1.5M, 20% above that. Property tax at 1% of the price per year and $150/month heat + insurance are included. This is information, not financial advice.
The price is one number. Affording it is a monthly habit.
The calculator tells you the price and the down payment. Finally tells you whether your real spending can carry the payment, and how fast you could save the rest of the down payment: upload a bank statement and get your true monthly surplus, the leaks worth fixing, and a free financial health score.
How this home affordability calculator works
Your affordable price is the largest one that passes every rule at once. In Canada: qualified at the stress test (your rate + 2%, minimum 5.25%), with housing costs within 39% of gross income (GDS) and all debt within 44% (TDS), semi-annual compounding, minimum down payment tiers, and the CMHC premium financed into the loan under 20% down. In the US: the 28/36 DTI rule at your actual rate, with PMI under 20% down. On top of the lending rules, the monthly payment you say you're comfortable with is enforced too, and the lower limit wins. Property tax and heat are included, and every assumption is editable.
What this calculator leaves out
Deliberately: closing costs and land transfer tax (budget roughly 2 to 4% of the price on top of your down payment), condo and HOA fees, rate changes at renewal, and how your credit score moves your rate. Those matter, but they refine the answer rather than change the starting point. This tool answers the first question in under a minute: what price range is realistic, and what would change it? For whether you’re ready to buy at all, read am I financially ready to buy a home.
Frequently asked questions
How much house can I afford?
A useful rule: the price where your monthly housing cost (mortgage payment, property tax, heat, and insurance) stays within what lenders allow AND within what your budget can actually carry. In Canada, lenders cap housing at 39% of gross income (GDS) and all debt at 44% (TDS), qualified at the stress-test rate. In the US, the common caps are 28% of gross income for housing and 36% for all debt. Whichever limit you hit first sets your price.
How much house can I afford in Canada?
Canadian lenders qualify you at the stress-test rate (the higher of your mortgage rate plus 2% or 5.25%), then require housing costs within 39% of gross income and all debt payments within 44%. On a $90,000 household income with $40,000 down at recent rates, that works out to roughly $375,000 to $380,000. A bigger down payment raises the number more reliably than anything else.
What is the mortgage stress test?
Since 2018, Canadian lenders must qualify you at the higher of your contract rate plus 2% or 5.25%, not the rate you'll actually pay. It exists so a rate rise at renewal doesn't sink you. It typically reduces what you can borrow by about 20% compared to qualifying at your actual rate, and this calculator applies it automatically.
What is the minimum down payment in Canada?
5% of the first $500,000, plus 10% of the part between $500,000 and $1.5 million. Homes at $1.5 million or more require 20% down, because they can't be insured. Under 20% down you also pay a mortgage default insurance premium (up to 4% of the loan), which gets added to your mortgage rather than paid in cash.
How much house can I afford in the US?
The common lending guideline is the 28/36 rule: housing costs (payment, property tax, insurance, and PMI if you put under 20% down) within 28% of gross monthly income, and all debt payments within 36%. On a $90,000 income with $40,000 down at recent 30-year rates, that's roughly $290,000. Conventional loans typically require at least 3% down.
Is my comfort level or the bank's limit what matters?
Both, and the lower one wins. The bank's limit is what they'll lend; your comfortable monthly payment is what you can live with. This calculator applies them together: the affordable price is the largest one that passes the lending rules and stays inside the monthly payment you set. If the bank would lend you more than you want to pay, your number sets the price, which is exactly how it should be.
Finally provides information to help you understand your finances. It is not personalized financial advice, and this calculator’s results depend entirely on the assumptions you choose.