Mortgage Analysis

Affordability
Calculator

See exactly what your monthly payment looks like at different price points. 3-year fixed rate, real CMHC insurance costs included.

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3-Year Fixed

Qualifying at 6.00%

yrs

Max 30 years

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Car, loans, cards

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Your Monthly Payment

$3,102

Mortgage only, before property tax and heating

Payment Breakdown

Mortgage Amount $617,500
CMHC Insurance Required
$24,700
Total Mortgage (with CMHC) $642,200
Down Payment $32,500
Stress Test Payment Qualifying Rate
$3,642

Full Monthly Housing Cost

Mortgage $3,102
Property Tax $333
Heating $150
Total Monthly Housing $3,585
0%
GDS Ratio

Guideline: under 39%

PASS

0%
TDS Ratio

Guideline: under 44%

PASS

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What is the Mortgage Stress Test?

Under Canada's federal lending rules (OSFI Guideline B-20), every borrower must prove they can afford their mortgage at a qualifying rate that's higher than the rate they'll actually pay. This applies to all federally regulated lenders operating in Ontario and across Canada.

How the qualifying rate is calculated

The bank takes your contract rate (the rate you negotiate, shown above as your interest rate) and adds 2% on top. If that number is below 5.25%, the bank uses 5.25% instead. The higher of the two becomes your qualifying rate.

Contract Rate

4.00%

What you pay

add

2%

Stress buffer

Qualifying Rate

6.00%

What the bank tests

Your GDS and TDS ratios above are calculated using this qualifying rate, not your actual payment. This means you need to qualify for a higher payment than what you'll actually owe each month. The stress test exists to make sure you can still handle your mortgage if rates go up during your term.

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CMHC Insurance

Required when your down payment is under 20%. The premium is added to your mortgage and ranges from 2.8% to 4.0% of the loan amount depending on your down payment.

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GDS Ratio

Gross Debt Service ratio measures your housing costs against income. Lenders want this under 39%. Calculated using the stress test qualifying rate, not your actual mortgage rate.

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TDS Ratio

Total Debt Service adds all your other debts (car payments, credit cards, loans) on top of housing costs. Lenders want this under 44% of your gross monthly income.

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