The Truth About
Your Affordability.
Most online calculators are wrong. They don't factor in the Stress Test (5.25%+) or the 39% GDS Limit. We do. See exactly what the bank sees.
Your Monthly Payment
$2,961
Income Required to Qualify
~$135,355 / yr
Based on 39% GDS Ratio at the Stress Test Rate of 5.39%.
Did the Calculator say "Declined"?
Don't panic. The calculator above uses strict "A-Lender" (Big Bank) rules—specifically the 39% GDS and 44% TDS ratios. If you are Self-Employed, have bruised credit, or high income deductions, you may not fit this box.
- We have lenders with 50% GDS / 50% TDS limits.
- We have "Stated Income" programs for Business Owners.
Methodology Breakdown
How banks actually calculate your approval amount in 2026.
The "Stress Test"
Even if your rate is 3.39%, the bank must calculate your affordability as if your rate was 5.39% (Contract + 2%). This safety buffer ensures you can afford the home if rates rise.
CMHC Premiums
If you put down less than 20%, you must pay Default Insurance. On a $500k home with 5% down ($25k), the insurance is roughly $19,000 (4%), which is added to your mortgage amount.
What is GDS vs TDS?
GDS (Gross Debt Service): Your Housing Costs (Mortgage + Tax + Heat) divided by Income. Max allowed is 39%.
TDS (Total Debt Service): Housing Costs + Other Debts (Car Loans, Credit Cards) divided by Income. Max allowed is 44%.
How can I lower my monthly payment?
1. Increase Down Payment: Putting 20% down avoids CMHC fees and allows for a 30-year amortization (lowering payments).
2. Shop Wholesale Rates: A 0.50% lower rate can save ~$200/month.
3. Clear Debts: Paying off a $400/month car loan increases your mortgage affordability by ~$100,000.
Get a Rate Hold.
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