Mortgage Calculator

How Much Can You Afford?

The shortest answer to that question is: it depends on a number of factors. The most important are your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.

To help you estimate the maximum mortgage you can afford CMHC has developed the following easy to use mortgage tool. Just enter the information required below and it will calculate the maximum house price you can afford, the maximum mortgage amount you can borrow, and your monthly mortgage payments of principal and interest.

These calculation are based on two simple rules that lenders use to determine how much of a mortgage you can afford. The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees.

Secondly, your entire monthly debt load should not be any more than 40% of your gross monthly income. This includes housing costs, and other debts such as car payments, personal loans, and credit card payments.

1 Interest is compounded semi-annually not in advance. The interest rate is fixed for the term of the mortgage. The interest rate is usually renegotiated at the end of the term of the mortgage.

2 Minimum down payment may vary

3 Calculations are approximate and do not account for the payment of CMHC Insurance Premiums, applicable sales taxes, closing costs or other fees that may be required.

CMHC Mortgage Calculator is for general illustrative purposes only. The amounts it projects are based upon assumptions and estimates made according to generally accepted principles for mortgages in Canada. CMHC cannot guarantee the projections. Actual payment amount must be obtained from your lender. Neither CMHC nor any of its advisors shall have any liability for the accuracy of the information contained on this page.