Find the maximum home price a Canadian lender will approve — based on GDS/TDS ratios and the mortgage stress test.
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Canadian mortgage lenders use two ratios to determine the maximum mortgage you qualify for: the Gross Debt Service (GDS) ratio and the Total Debt Service (TDS) ratio. Both are calculated using the mortgage stress test rate — not your actual rate.
GDS measures your housing costs as a percentage of gross income. It includes: mortgage payment (at stress test rate), property taxes, heating costs, and 50% of condo fees. Your GDS must not exceed 39% to qualify for a mortgage.
TDS adds all other monthly debt obligations (car loans, credit cards, student loans, lines of credit) to your housing costs and divides by gross income. TDS must not exceed 44%. Even if your GDS is fine, high consumer debt can disqualify you.
Since January 2018, all Canadian mortgages — insured and uninsured — must be stress tested at the higher of your contract rate + 2% or 5.25%. This means if your rate is 5%, you must qualify as if your rate were 7%, significantly reducing maximum affordability.
The most effective levers are: paying off consumer debt before applying (every $100/month freed up adds $20–25k in home price), adding a co-applicant's income, increasing your down payment to avoid CMHC and reduce the principal, and extending amortization to 30 years (reduces monthly payment used in ratio calculation).
This calculator uses standard Canadian GDS (39%) and TDS (44%) limits and the 2025 stress test rules. Individual lenders may apply different criteria. CMHC premiums are current as of 2025. Not financial or mortgage advice — consult a licensed mortgage broker for personalized qualification.