Use the calculator below provided by the Canada Mortgage and Housing Corporation to determine the maximum amount of mortgage that you can afford based on your income.

How much Can I afford?

When looking at mortgages, there are 3 basic calculations that are important to the mortgage approval process.

LTV or Loan-to-Value - This calculation looks at how much money is being borrowed vs. how much is the property worth.  In Canada a property that is purchased where the down payment or equity in the home is less than 25%, it is considered "non-conventional".  Click here for more information.

TDSR or Total Debt Service Ratio - This ratio looks at the total cost of paying all of your credit obligations such as: housing, car loans, credit card & student loan payments vs. your gross income.  Most lenders like to see a rate of less than 40%.  For example, if your gross monthly income is $4000, a lender will like to see no more than $1600 being spent on housing costs and debt payments.  Some lenders do allow a TDSR of higher than 40% with certain criteria based on your credit report. 

GDS or Gross Debt Service - The GDS ratio looks at the total amount of housing costs vs. your gross income.  The GDS takes into account mortgage principal, interest, property taxes, heat and 1/2 of the monthly condominium fees(if applicable).  This amount should not exceed 32% of your gross income.  Using the income from above, if you annual income is $40,000, the total amount of housing costs should not exceed $1066 per month.