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Mortgage Affordability Calculator

When searching for a new home, the first step is to figure out how much you can afford. Ratehub.ca takes the most important factors like your income and expenses and determines the maximum purchase price that you can qualify for with our mortgage affordability calculator.

Ratehub.ca’s mortgage affordability calculator

Calculate your maximum affordability

Your gross income before-tax, including any bonuses and supplementary income.

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(Optional)

If you don't know these costs, leave the fields blank and we will estimate for you.

(Optional)

Enter debt payments if applicable. If you have none, you can leave blank.

Build your personalized mortgage scenario to determine your mortgage payment

WATCH: 2025 mortgage rule changes for homebuyers

Frequently Asked Questions

How much mortgage can I afford?


How do I calculate my affordability?


What is the minimum down payment I can make?


What is the CMHC insurance? (mortgage default insurance)


When I use the calculator, why does the Land Transfer Tax (LTT) line item change if I toggle to the First-Time Home Buyer option?


What is the Estoppel certificate fee?


How much mortgage can I get with a $70,000 salary?


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Guide to mortgage affordability

What is mortgage affordability, and why does it matter?

Mortgage affordability refers to how much you’re able to borrow based on your current income, debt and living expenses. It’s essentially your purchasing power when buying a home. The higher your mortgage affordability, the more expensive a home you can afford to purchase.

In addition to the mortgage itself, it's crucial to account for other cash requirements, such as your down payment and closing costs. These costs, which can be estimated using the Cash Needed tab in our mortgage affordability calculator, will help you gauge the full financial commitment of purchasing a home.

Several factors impact your mortgage affordability, including your household income, monthly debt payments (like car loans or credit card bills), and the ongoing costs of homeownership (e.g., property taxes, condo fees, and heating). By understanding both your borrowing capacity and the cash required to complete a purchase, you’ll be better equipped to determine what kind of home fits your budget.

May 2025 Canadian mortgage affordability update

Home affordability improved in seven of 13 major Canadian cities in April, according to Ratehub.ca’s latest monthly report. This improvement was due to lower home prices, despite fixed and variable mortgage rates holding steady through the month. 

Rate stability was driven in part by the Bank of Canada maintaining its overnight rate at 2.75% in April, keeping the prime rate — and by extension, variable mortgage rates — unaffected. The average five-year fixed rate remained at 4.38%, with the mortgage stress test rate unchanged at 6.38%. The broader slowdown in the housing market, including a 9.8% annual drop in home sales reported by CREA, had the biggest impact on affordability, pushing home prices down in many markets.

Hamilton recorded the largest affordability gain in April, with average home prices falling by $9,600 to $801,400. As a result, buyers needed $1,800 less in annual income to qualify for a mortgage, and average monthly payments dropped by $49 to $4,066. Toronto saw similar effects, with home prices down $7,500 from March to $1,184,600. That translated to a $1,400 relief in the required income threshold and a $38 dip in average monthly payments. Conversely, Regina saw affordability deteriorate, as home prices rose by $9,100 to $335,400, pushing required borrower income up by $1,730 and increasing monthly payments by $46.

Looking ahead, Canada’s housing affordability remains uncertain amid mixed economic signals. Unemployment rose to 6.9% in April and manufacturing was hit hard by tariffs, while core inflation remains stubborn due to rising food and vehicle prices. The Bank of Canada now faces a difficult policy decision ahead of its June 4 rate announcement: whether to provide more economic stimulus through rate cuts or hold steady to keep inflation in check.

Read more- Lower home prices in April improved affordability in half of Canada’s housing markets

Market factors influencing affordability

Rates have trended lower in the early months of 2025, largely due to  the heightened economic uncertainty caused by new U.S. tariffs on Canadian goods and Canada’s retaliatory measures. These tariffs, and potential resulting job losses, could tip the economy into a recession. In response, investors have flocked to safer assets, driving down bond yields in the 2.5-2.6% range and by extension, fixed mortgage rates. 

The Bank of Canada has also cut its overnight lending rate multiple times to bolster the economy, which has further lowered variable mortgage rates. While this creates an opportunity for more affordable monthly payments, it also increases the risk of job losses and wage stagnation in a more volatile housing market. Should the economy slip into stagflation, where prices rise even as growth slows, the central bank could find itself compelled to hike rates sooner rather than later.

WATCH: How to take advantage of future lower rates

How to use the mortgage affordability calculator

To use our mortgage affordability calculator, simply enter your and your co-applicant’s income (if applicable), as well as your living costs and debt payments. The calculator can estimate your living expenses if you don’t know them.

With these numbers, you’ll be able to calculate how much you can afford to borrow. You can also change your amortization period and mortgage rate to see how that would affect your mortgage affordability and your monthly payments.

How to increase your mortgage affordability

If you want to increase how much you can borrow, thus increasing how much you can afford to spend on a home, there are few steps you can take.

1. Save a larger down payment: The larger your down payment, the less interest you’ll be charged over the life of your loan. A larger down payment also saves you money on the cost of mortgage default insurance

2. Get a better mortgage rate: Shop around for the best mortgage rate you can find, and consider using a mortgage broker to negotiate on your behalf. A lower mortgage rate will result in lower monthly payments, increasing how much you can afford. It will also save you thousands of dollars over the life of your mortgage.

3. Increase your amortization periodThe longer you take to pay off your loan, the lower your monthly payments will be, making your mortgage more affordable. However, this will result in you paying more interest over time. These are just a few ways you can increase the amount you can afford to spend on a home, by increasing your mortgage affordability. However, the best advice will be personal to you. Find a licensed mortgage broker near you to have a free, no-obligation conversation that’s tailored to your needs and free of charge.

4. Take advantage of the proposed GST exemption: In March 2025, Prime Minister Mark Carney’s government introduced a plan to remove the 5% GST for first-time home buyers who purchase newly constructed or substantially renovated homes priced up to $1 million. The Conservative Party has also floated a similar proposal that would extend the exemption to homes valued up to $1.3 million, without limiting eligibility to first-time buyers. The exact scope of this policy will depend on the outcome of the federal election on April 28, 2025.