The bank tells you what you qualify for. This tells you what you can actually afford - after tithing, saving, and leaving margin to breathe.
Enter your actual situation to see your GDS and TDS ratios.
Your Income
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Housing Details
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30-year amortization available with 20%+ down payment on insured mortgages as of 2024.
Monthly Costs (used in GDS ratio)
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Typical range: $300–$700/mo. Check your municipality. ~0.6–1% of home value annually.
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Most lenders use $150–$200/month as a default estimate.
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50% of condo fees are included in the GDS calculation.
Other Monthly Debts
Added to housing costs for the TDS ratio. Leave at 0 if not applicable.
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Your Priorities
The bank ignores these. You shouldn't.
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Your Affordability Summary
GDS Ratio (max 39%)--
TDS Ratio (max 44%)--
TDS equals GDS when you have no other monthly debts.
Maximum Home Price at Each Threshold
Bank Maximum
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GDS 39% limit
Conservative
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GDS 28% target
Wise & Faithful
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After tithe & savings
If 10% goes to tithe and 10% to savings, only 80% of your income is available for expenses. Housing should stay around 30% of that 80% - which is roughly 24% of gross.
Monthly breakdown based on your Wise & Faithful maximum price (--). Adjust your income, down payment, or priorities to see how it changes.
Monthly Budget Breakdown
Gross Monthly Income--
Tithe / Giving--
Savings--
Remaining (after tithe & savings)--
Mortgage Payment--
Property Tax--
Heating--
Condo Fees (50% in GDS)--
Other Debt Payments--
Total Housing & Debt--
Left for Everything Else--
GDS and TDS Explained
Gross Debt Service (GDS)
Your monthly housing costs - mortgage payment, property tax, heating, and 50% of condo fees - divided by gross monthly income. Must be 39% or less to qualify.
Total Debt Service (TDS)
All monthly housing costs plus all other debt payments (car, student loans, credit cards, lines of credit) divided by gross monthly income. Must be 44% or less.
The honest problem with these ratios: The bank's maximum does not account for tithing, retirement savings, emergency funds, children, or any margin for life. A GDS of 39% is a cliff edge, not a goal. Aim well below it.
The Stress Test
To get a mortgage in Canada, you must qualify at a rate higher than what you'll actually pay. This is the mortgage stress test, required by OSFI since 2018.
Contract Rate
Stress Test Rate
Rule Applied
3.0%
5.25%
Floor rate
4.0%
6.0%
Rate + 2%
4.84%
6.84%
Rate + 2%
5.5%
7.5%
Rate + 2%
The stress test exists to ensure you can still afford your mortgage if rates rise. It reduces borrowing power by roughly 20% compared to qualifying at the contract rate.