Toolkit

Affordability Calculator

Canadian rules: semi-annual compounding, GDS/TDS ratios, federal stress test (higher of rate + 2% or 5.25%), CMHC minimum down payment.

Gross household income (annual)

$120,000

Other monthly debt payments (car, LOC, student)

$500/mo

Down payment saved

$80,000

Expected mortgage rate (%)

5.5%

Amortization (years)

25 yrs

Estimated max purchase price

$526,621

Stress-tested at 7.50% · 25-yr amort

Max mortgage (stress-tested)

$446,621

Actual monthly payment at 5.5%

$2,726/mo

Semi-annual compounding (Canadian Interest Act)

CMHC minimum down payment

$27,662

✓ Your $80,000 covers the minimum for this price. Here, your income is the limiting factor.

Illustration only, not a mortgage pre-approval. Canadian mortgages use semi-annual compounding per the Interest Act. GDS 39% / TDS 44% (the insured maximums; some lenders apply tighter limits), stress test at higher of rate + 2% or 5.25%. Property tax is modelled at a deliberately conservative 1.1% of price (Waterloo Region bills on MPAC assessed value, so actual is usually lower). Buying a condo? Lenders also count 50% of condo fees in these ratios. Rental, bonus, or part-time income is typically discounted by lenders, not counted dollar for dollar.

William refers all buyers to Matthew Pickering, National Bank of Canada, 905-802-7788.

Keep exploring

Now that you know your number

Closing Cost Estimator →Budget the Ontario LTT, legal fees, and HST rebates Neighbourhood Atlas →See which areas fit your price range Talk to William →Turn your budget into a real short list of homes