Calculator
How much mortgage can I afford?
The highest price your income supports once the stress test, the debt-service limits, the insurance premium and the minimum down payment are all applied. You'll also see the gap between the rate a lender tests you at and the payment you'd make.
Your numbers
Before tax, both applicants combined.
Car loans, student loans, support payments, or anything else with a fixed monthly payment.
Our published 5-year fixed. We qualify you at this rate plus 2 points.
Advanced options(8)
Income and debts
Added to the household income above, on the same per-year or per-month basis.
Counted at 3% of the balance per month, which is the usual lender convention.
Where you are buying
Sets the property tax rate, and the land transfer tax or Land Titles fee in your cash to close.
Carrying costs
Half of the condo fee counts in both ratios.
About you
Rate taken from the RateLens published table, current as of September 21, 2026 at 9:00 a.m. MT. Rules, premium tiers and fee schedules current as of September 16, 2026.
Your maximum purchase price
$534,993
A mortgage of $504,393 on a down payment of $50,000.
- Mortgage amount
- $504,393Including the financed premium
- Down payment
- $50,0009.3% of the price
- Your payment
- $2,678Principal and interest at 4.09%
- Cash to close
- $57,290Down payment plus every closing cost
The rate you qualify at and the rate you pay
Under OSFI Guideline B-20, every lender must approve you at the greater of your rate plus 2 percentage points or 5.25%. You don't pay that rate, but it decides the size of your mortgage.
| Measure | Qualifying (stress-tested) | What you'd pay |
|---|---|---|
| Rate | 6.09% | 4.09% |
| Monthly payment | $3,254.18 | $2,677.88 |
Lenders must approve you at 6.09%, but you’d pay $2,677.88. That’s $576.30 a month less than the payment you’re tested at.
How we calculate your qualifying rate. Under OSFI Guideline B-20, lenders qualify you at the higher of your contract rate plus 2 percentage points, or 5.25% (the minimum qualifying rate). Since November 21, 2024, OSFI no longer prescribes this test for eligible uninsured straight switches at renewal between federally regulated lenders, with no increase in the loan amount or remaining amortization. Lenders still assess creditworthiness. New purchases and refinances generally require qualification. Provincially regulated credit unions (including Alberta credit unions) aren’t bound by Guideline B-20 and set their own qualifying policies, which is one reason a broker can sometimes place a file a bank cannot. Rules current as of September 16, 2026. Source: OSFI Guideline B-20.
Your total debt ratio (TDS) sets your limit
TDS counts your mortgage payment, property tax, heat and half the condo fee, plus every other debt payment you make. It's the ratio that kept this number from going higher.
- GDS: housing costs38.0%Right on the limit
39% is the limit: mortgage, tax, heat, half the condo fee.
- TDS: all debts44.0%Over the limit
44% is the limit: everything in GDS, plus every other payment.
| Ratio | Yours | Limit | Verdict |
|---|---|---|---|
| GDS: housing costs | 38.0% | 39% | Right on the limit |
| TDS: all debts | 44.0% | 44% | Over the limit |
- Qualifying rate
- 6.09%
- GDS / TDS limits
- 39% / 44%
- Amortization
- 25 years
- Property tax
- 1.00%
- Heating
- $100/mo
- Rules as of
- September 16, 2026
What would change your maximum
Each row runs the same calculation again with one thing changed.
| Pay off $300/mo of debtNew maximum $548,251 | +$13,257 |
|---|---|
| Add $20,000 to your down paymentNew maximum $556,529 | +$21,536 |
| Rate falls 0.50%New maximum $555,574 | +$20,581 |
Your housing cost at the contract rate, month by month. Default insurance is financed into the mortgage, so it sits inside the principal and interest.
- Mortgage payment$2,678
- Property tax$446
- Heating$100
| Component | Amount | Share |
|---|---|---|
| Mortgage payment | $2,677.88 | 83.1% |
| Property tax | $445.83 | 13.8% |
| Heating | $100.00 | 3.1% |
What you need in cash on closing day
The down payment is the biggest part. Insured lenders also want to see 1.5% of the price available for closing costs, on top of the down payment.
| Down payment | $50,000 |
|---|---|
| Land Titles registration feesTransfer fee plus mortgage registration | $1,140 |
| Provincial sales tax on the insurance premiumAlberta charges none | $0 |
| Legal, title, inspection and adjustmentsEditable estimates in the closing costs calculator | $6,150 |
| Total cash to close | $57,290 |
Alberta charges no land transfer tax
The 1.5% rule
Alberta charges a registration fee instead of a tax based on the price. This compares Alberta's fee with each province's tax.
- Alberta$585
- Ontario$7,175
- Toronto$14,350
- British Columbia$8,700
| Jurisdiction | Payable at closing |
|---|---|
| Alberta | $585 |
| Ontario | $7,175 |
| Toronto | $14,350 |
| British Columbia | $8,700 |
Get a pre-approval letter you can bid with
A pre-approval turns this estimate into a letter you can show a seller, with your rate held for 120 days. It uses a soft credit check, which doesn’t affect your score.
Get pre-approvedYour maximum price
$534,993
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
How the calculator solves for your price
Two of the inputs depend on the answer. The default insurance premium depends on the loan-to-value, which depends on the price. The property tax estimate is a percentage of the price. There’s no single formula that works across a premium tier boundary, so the calculator repeats the calculation until the price settles.
- Housing allowance. The lesser of 39% of gross monthly income (GDS) and 44% of income minus your other debt payments (TDS). Take off property tax, heating and half the condo fee, and what’s left can go to principal and interest.
- Maximum mortgage. That payment, worked backwards through the standard mortgage formula at the qualifying rate. Your contract rate isn’t used for this step.
- Price. Down payment plus the mortgage, with the premium removed. The tax and the premium tier are recalculated from the new price, and the loop runs again until the price moves by less than 50 cents.
- Limits. The result is checked against the minimum down payment rules and the $1,500,000 insured price cap. If either one sets the ceiling, the result tells you instead of showing a price you couldn’t buy at.
The qualifying rate
Under OSFI Guideline B-20 you’re qualified at the greater of your contract rate plus 2 percentage points or the 5.25% floor. At today’s rates the “plus two” figure almost always wins. That rate sets the size of the mortgage. The contract rate sets your payment. The two-rate panel shows the gap between them, and it’s one of the most misunderstood parts of Canadian lending.
GDS and TDS
GDS is your mortgage payment, property tax, heating and half of any condo fee, divided by gross income. TDS is all of that plus your other debt payments. The insured maximums are 39% and 44%. Individual lenders set their own limits, and some go higher or lower. A file with strong credit is sometimes reviewed up to 50% TDS. Daniel can tell you which lenders allow it, so the calculator doesn’t assume it.
Credit card and line-of-credit balances count at 3% of the balance per month, and heating at $100 per month. Both are lender conventions, not regulation, and your lender may use different figures.
Cash to close in Alberta
Cash to close is the down payment plus the land transfer tax (in Alberta, the Land Titles registration fees instead), plus provincial sales tax on the insurance premium where it applies, plus legal, title, inspection and adjustments.
In Alberta, two of those lines are zero. We still show them at zero so you can compare provinces line by line. There’s no land transfer tax and no sales tax on the premium. Compare that against Ontario, Toronto and BC.
Payment mode
Choosing “a payment” runs the same calculation. The calculator works out the income at which your all-in housing payment would sit right at the GDS limit, then solves from that income as normal. The premium, the ratios and the two-rate panel all come from the same calculation.
Common questions
Why is the maximum price lower than my bank's number?
It’s usually one of 3 reasons, and each one is on your side:
- We qualify you at the OSFI minimum qualifying rate (your rate plus 2 percentage points), not at your contract rate.
- We use the insured maximums of 39% GDS and 44% TDS, not a lender’s internal exception.
- We include property tax, heating and half of any condo fee in the ratios. Many quick online estimates leave all three out.
Some lenders will go past 44% TDS on a strong file. Daniel can check that for your file, but it isn’t something a calculator should assume for you.
What does 'which limit is binding' mean?
It’s the ratio that stopped your maximum where it is. Two ratios cap your mortgage, and only one of them is the limit in your case.
If GDS is binding, your housing costs alone reach 39% of income, and paying off a car loan wouldn’t change the number. If TDS is binding, your other debts are the limit. That’s far more common, and it’s usually a vehicle payment. Paying those debts down is the quickest way to raise your maximum. The sensitivity table shows what that’s worth in purchase price.
Does the down payment change the answer, or only the price?
Both, and the effect isn’t a straight line.
Each extra dollar of down payment adds a dollar of price. It can also move you into a lower premium band: 4.00% under 10% down, 3.10% from 10%, 2.80% from 15%, and nothing at 20%. A lower band means a smaller premium added to the mortgage, a lower payment, and a higher price your income supports.
So the “add $20,000” row in the sensitivity table can be worth a lot more than $20,000 of price.
What income counts?
Gross household income before tax, for everyone who’ll be on the mortgage. Salaried income is taken at face value.
Self-employed income is usually a two-year average of line 15000 on your notices of assessment, sometimes grossed up. Bonus, commission and overtime generally need a two-year history. Rental income counts at a portion, and the portion varies by lender. If any of that applies to you, treat this number as a starting point. Daniel can work out how lenders will read your income.
Should I buy at my maximum?
Almost never.
Your maximum is the most a lender will approve. It doesn’t tell you what will feel comfortable month to month. Rates change at renewal, property tax goes up every year, and cars need replacing.
Most people we work with buy at 80–90% of what they qualify for. The ones who don’t are more often the ones who call us about a payment shock 5 years later.
Why is Alberta's cash to close lower than Ontario's?
Alberta charges no land transfer tax and no provincial sales tax on the default insurance premium.
Instead, you pay Land Titles registration fees: $50 plus $5 for every $5,000 (or part) of the property’s value on the transfer, and the same formula again on the mortgage amount. On a $500,000 purchase with a $400,000 mortgage, that’s about $1,000. In Ontario you’d pay several thousand in land transfer tax, and roughly double that in Toronto.
What to work out next
- Maximum purchase priceRun the ratios against the price of a specific property.
- Stress testSee what the qualifying rate does to how much you can borrow.
- Down paymentThe minimum down payment by price band, and how long it takes to save the gap.
- Closing costsThe cash you need on closing day, itemised for Alberta.
- Mortgage paymentTake this price and see the payment at every frequency.
- First-time buyer plannerFHSA, HBP, the tax credit and the GST rebate, stacked against your down payment.
This calculator provides estimates only. Results are based on the information you enter and on assumptions that may not reflect your actual qualification, rate or costs. These include semi-annual, not-in-advance compounding for fixed rates, as required under section 6 of the federal Interest Act, and the mortgage default insurance premium tiers published by CMHC, Sagen and Canada Guaranty. It is not mortgage advice, a quote, a rate hold, a pre-approval or an offer of credit, and RateLens does not guarantee its accuracy or completeness. Your actual rate, payment, default insurance premium and closing costs will depend on your credit profile, income, the property, the lender’s current rates and policies, and other factors confirmed during a full application.
Qualifying rate methodology: you are qualified at the higher of your contract rate plus 2 percentage points or the 5.25% minimum qualifying rate, in accordance with OSFI Guideline B-20. The stress test does not apply to a straight renewal with your existing lender, and since November 2024 does not apply to an uninsured straight switch. Lender debt-service ceilings shown (GDS 39% / TDS 44%) are insurer guidelines; individual lenders may apply higher or lower limits at their discretion.
Premiums shown approximate the published premium schedules of CMHC, Sagen and Canada Guaranty and are subject to each insurer’s current rate sheet. They are not guaranteed by RateLens. No provincial sales tax applies to the premium in Alberta. In Ontario, Quebec, Saskatchewan and Manitoba, PST on the premium is payable in cash at closing and cannot be added to the mortgage. Default insurance is not available on properties priced at or above $1,500,000.
Rules snapshot: September 16, 2026. Rates shown are calculation assumptions, not confirmed offers. Speak with Daniel De Sousa, Mortgage Associate, for a personalized quote. Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage licensed by RECA.
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage is a mortgage brokerage licensed by the Real Estate Council of Alberta (RECA). Verify our licence on RECA ProCheck(opens in a new tab)
RateLens is a trade name used by Daniel De Sousa, Mortgage Associate, licensed in Alberta by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
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