Combine qualifying income
Annual income and additional annual income are combined and converted to gross monthly qualifying income. Only income a lender is expected to accept should be entered.
Core Residential Mortgage Calculators
Maximum Mortgage Calculator Canada
Estimate the maximum mortgage supported by annual income, additional qualifying income, GDS, TDS, property tax, heating cost, monthly debt liabilities, and the Canadian mortgage stress test.
Maximum mortgage amountGDS and TDS constraint analysisCanadian stress-test qualifying rateDebt-capacity impact
Calculation inputs
Estimate maximum mortgage qualification
Enter annual qualifying income, debt-service limits, property carrying costs, and monthly debt payments. Advanced assumptions control the stress-test rate and amortization.
Enter only rental, bonus, support, pension, benefit, or secondary income expected to qualify.
$
Use the actual annual tax bill for a known property or a conservative estimate.
$
$
Combine monthly payments counted by the lender for loans, credit cards, lines of credit, support, and other obligations.
$
Stress-test and amortization assumptions
Used to determine the stress-test qualifying rate and estimate the contractual payment.
%
%
%
How the calculation works
Understand the formula before relying on the result
Solve the GDS payment limit
The entered GDS percentage is applied to gross monthly income. Monthly property tax and heating are then deducted to determine the mortgage principal-and-interest payment supported by GDS.
Solve the TDS payment limit
The entered TDS percentage is applied to gross monthly income. Other monthly debt payments, property tax, and heating are deducted to determine the mortgage payment supported by TDS.
Convert payment capacity into mortgage principal
The lower GDS- or TDS-derived payment is converted into a mortgage amount using the stress-test qualifying rate, Canadian semi-annual compounding, monthly payments, and the selected amortization.
Interpret the result
The lower ratio governs
GDS may bind when property carrying costs are high. TDS commonly binds when vehicle loans, credit cards, lines of credit, support, or other monthly obligations are material.
Maximum mortgage is not maximum price
Purchase price also depends on down payment, mortgage-insurance premium, closing costs, insurer eligibility, property value, and the mortgage amount ultimately approved.
Stress-test payment differs from actual payment
The maximum mortgage is solved using the higher qualifying payment. The estimated contract payment is shown separately and may be lower.
A ratio result is not an approval
Credit, income documentation, employment stability, down-payment source, property, appraisal, insurer rules, and lender policy remain part of underwriting.
Common mistakes
- Entering net take-home pay rather than gross qualifying income.
- Including additional income at 100% before confirming lender treatment and documentation.
- Using credit-card statement minimums when a lender may apply another payment method.
- Entering monthly property tax in a field that requires the annual amount.
- Treating the maximum mortgage as a comfortable personal budget or confirmed approval.
- Ignoring down payment, mortgage insurance, and closing costs when converting the mortgage amount into a purchase price.
What lenders review
- Income source, stability, history, continuity, and documents.
- How bonus, overtime, commission, rental, pension, support, benefit, and business income are treated.
- Credit history, utilization, monthly debt obligations, guarantees, and undisclosed liabilities.
- Property taxes, heating allowance, condominium fees where applicable, and property type.
- Mortgage-insurance eligibility, amortization eligibility, down payment, and source of funds.
- The lender's permitted GDS, TDS, stress-test, and exception policy for the specific application.
Planning tips
- Use the actual annual property-tax bill when testing a known home.
- Run the calculator before and after paying off a debt to measure the mortgage-capacity effect.
- Use conservative additional income until a broker or lender reviews the documents.
- Compare 25- and 30-year amortizations only where the longer amortization may be eligible.
- Use the Affordability Calculator next to add down payment, mortgage insurance, and maximum purchase price.
Connected HopeWell knowledge
Connect the maximum mortgage calculator to the mortgage decision
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
Related mortgage calculators
Continue into qualification, purchase costs, equity, refinancing, HELOC planning, and mortgage comparison using the connected calculators below.
Live
Mortgage Payment Calculator Canada
Calculate contractual payments, amortization, interest, and prepayment scenarios.
Live
Mortgage Affordability Calculator Canada
Estimate maximum purchase price using mortgage capacity, down payment, and insurance rules.
Live
Mortgage Stress Test Calculator Canada
Compare contract-rate and qualifying-rate payments for a known mortgage.
Live
Debt Consolidation Calculator
Measure whether restructuring monthly debts could change cash flow and future qualification.
Live
Business-for-Self Income Estimator
Estimate a supportable planning income before applying GDS and TDS.
Frequently asked questions
Questions about this calculation
How is the maximum mortgage calculated?
The calculator determines the maximum mortgage payment allowed by the entered GDS and TDS limits, uses the lower payment, and converts it into mortgage principal at the stress-test qualifying rate over the selected amortization.
What stress-test rate does the calculator use?
By default, it uses the greater of the entered contract rate plus 2 percentage points or 5.25%. The floor and buffer are editable so the calculator can remain useful if policy or lender assumptions change.
Why can TDS reduce my mortgage more than GDS?
TDS includes both housing costs and other counted monthly debt payments. Car loans, credit cards, lines of credit, support payments, and other obligations can therefore reduce the amount available for the mortgage payment.
Does additional income always count?
No. Lenders may average, reduce, or exclude income depending on its source, history, stability, continuity, and documentation. Enter only a supportable planning amount.
Does this show the maximum home price?
No. It estimates the mortgage amount supported by debt-service ratios. Use the Mortgage Affordability Calculator to add down payment, mortgage insurance, and purchase-price rules.
Does a calculated maximum guarantee approval?
No. A lender must still approve the borrower, income, credit, down payment, property, appraisal, documents, and program eligibility.