How much mortgage can I afford in Ontario?
Stress-tested at the greater of contract +2% or 5.25% — the same math a federally regulated lender will run on your file. Province-aware: includes land transfer tax and closing costs so you see real cash-needed-at-closing, not just the qualifying mortgage.
Your inputs
Lifetime cost of your maximum mortgage
Principal vs. interest over the full 30-year amortization at the 6.39% qualifying rate
Lender-ready summary, your assumptions baked in, and a personalized note from an advisor at Mortgage Squad Advisors.
How lenders decide what you can afford
Affordability in Canada is governed by two debt-service ratios, both measured at the qualifying (stress-test) rate — the greater of your contract rate +2% or 5.25%. Your Gross Debt Service (GDS) ratio caps housing costs (principal, interest, property tax and heat) at roughly 39% of gross income. Your Total Debt Service (TDS) ratio caps housing plus every other monthly obligation at about 44%.
Whichever ratio you hit first becomes your binding limit. That is why paying down a car loan or credit-card balance can lift your maximum purchase more than a small income bump — it frees up room under the 44% TDS ceiling. The bars below show exactly where your file lands against both limits.
Want to push the number higher? Compare lenders with our stress test calculator — some provincial credit unions qualify at contract rate — or see the income behind any price with our income-required calculator.
Your debt-service ratios vs. lender limits
Computed at the 6.39% qualifying rate. Staying under both bars is what gets your file approved.
GDS counts principal, interest, property tax and heat. TDS adds your other monthly debt of $450. A green bar means you clear the limit with room to spare; a red bar means the limit is capping your maximum purchase.
Amortization schedule
How your balance falls — and how the interest/principal split shifts — over 30 years.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $6,875 | $37,198 | $586,074 |
| 2 | $7,321 | $36,752 | $578,754 |
| 3 | $7,796 | $36,277 | $570,958 |
| 4 | $8,302 | $35,771 | $562,655 |
| 5 | $8,841 | $35,232 | $553,814 |
| 6 | $9,415 | $34,658 | $544,399 |
| 7 | $10,026 | $34,046 | $534,373 |
| 8 | $10,677 | $33,395 | $523,695 |
| 9 | $11,371 | $32,702 | $512,325 |
| 10 | $12,109 | $31,964 | $500,216 |
• Qualified at the stress-test rate of 6.39% (greater of contract +2% or 5.25%).
• Property tax estimated at 1.00% of price annually.
• Insured/uninsured down-payment minimums (5%/20%) and CMHC premiums are not modelled here.