Affordability · Ontario

How Much House Can You Afford?

Real B-20 stress test math. GDS + TDS ratios, insured vs uninsured, rate sensitivity across 3 scenarios.

Your Financial Picture

Inputs

$
$
$
4.29%
1.00%12.00%
25 yrs
5 yrs35 yrs

B-20 stress test

Federally regulated A-lenders (Big 6, monolines) must qualify you at the greater of contract rate + 2% or 5.25%. B-lenders and credit unions have looser rules.

Max Purchase Price

$594,102

Down payment: $80,000 (13.5%)

Max Mortgage Amount

$514,102

Qualified at 6.29%

Ratio Health

Where you stand

GDS (Gross Debt Service)39.0% / 39%

Housing costs ÷ income

TDS (Total Debt Service)44.0% / 44%

Housing + all other debts ÷ income

Rate Sensitivity

How much house at 3 different rates

at 3.29%

$639,971

at 4.29%

$594,102

at 5.29%

$553,787

Summary

Qualifying rate used6.29%
Monthly payment (at max)$3,378
Est. total monthly housing cost$3,900
Max mortgage vs contract-rate max-$98,046 less vs contract rate

These numbers are a good estimate. A licensed IndiBrick advisor will tune them against your actual file and current lender rates.

Get a real pre-approval
Nitish Gupta

Personally reviewed by

Nitish Gupta

Co-Founder · Mortgage Agent Level 1

FSRA #128306+ yrsEnglish · Hindi · Punjabi

I personally review every purchase + renewal files, business development and respond within 2 business hours.

Questions you probably have

What is GDS and TDS?+

GDS (Gross Debt Service) = housing costs (mortgage + property tax + heating + 50% of condo fees) ÷ gross monthly income. Max 39% under B-20. TDS (Total Debt Service) = GDS + all other monthly debt payments (car, LOC, credit cards). Max 44% under B-20. You have to pass BOTH ratios to qualify with a Canadian A-lender.

What is the stress test?+

Federal B-20 requires you to qualify at the greater of your contract rate + 2% or 5.25% (the "minimum qualifying rate"). It exists to make sure you can still afford payments if rates rise mid-term. Only federally regulated A-lenders enforce it — provincially regulated credit unions and B-lenders often do not.

How can I qualify for more house?+

Three main levers: 1. Reduce monthly debts — a $400/mo car payment costs you about $80,000 of mortgage qualification. 2. Add a co-signer — blending incomes lowers your GDS/TDS ratios. 3. Larger down payment — reduces the mortgage amount you need to qualify for, and if it takes you over 20% down you also drop CMHC insurance costs.

Should I use the "safe" number or the "max"?+

The number this calculator shows is your MAX under A-lender rules — the bank ceiling. Your "safe" number depends on what else is in your budget: daycare, savings goals, travel, emergency reserves. A common rule: keep total housing cost below 30% of your take-home (post-tax) income for real financial breathing room.

What if I fail the stress test?+

A-lenders will decline. Options: (1) reduce purchase price so you fit within stress-tested ratios, (2) increase down payment, (3) reduce other debts, (4) use a B-lender (rates 100–200 bps higher but no stress test), (5) add a co-signer. A broker can route the file — a single decline at your bank does not mean the deal is dead.

Real numbers, real broker.

The math above is a good estimate — a licensed IndiBrick advisor will tune it against your file and current lender rates.

Get a real pre-approval

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