Mortgage Qualifier

Answer a few questions to see if you could qualify for a mortgage and how much you can afford.

1
2
3
4
Property & Location
$
$
The minimum down payment depends on the price: 5% on the first $500,000, 10% on the portion above it, and 20% at $1,500,000 or more.
Income
$
Pre-tax income for the primary applicant only. Add a co-applicant below if there is one.
Monthly Debts

Enter your current monthly debt obligations. Leave at $0 if none.

$ /mo
$ /mo
$ /mo
$ /mo
Mortgage Details
%
The rate lenders test you at — not your quoted rate. Canada's stress test uses the greater of your contract rate + 2% or 5.25%.
$
$
$

GDSR (Gross Debt Service Ratio)
TDSR (Total Debt Service Ratio)
Monthly Payment Breakdown
Mortgage (P&I)
Property Tax
Heating / Utilities
Strata / Condo Fees
PMI
Total Housing Cost
Mortgage Summary
Mortgage Amount
Down Payment
Maximum Affordable Price
Income Required for This Home
Model this in the Calculator
How It Works

Lenders use two key ratios to decide if you qualify:

  • GDSR — Housing costs should be no more than 32% of your gross income.
  • TDSR — All debts (housing + loans) should be no more than 44% of your gross income.
  • Down Payment — Tiered by price in Canada: 5% on the first $500,000, 10% on the portion above it, and 20% at $1,500,000 or more. Under 20% requires mortgage insurance.
Your Privacy

All calculations happen in your browser. No data is saved or sent to any server.

Disclaimer

These results are deliberately conservative. The tool applies fixed 32%/44% ratio limits and a general mortgage insurance estimate. Real underwriting is more flexible — lenders regularly approve above these ratios where credit, reserves, employment history or a co-signer support it. Treat a poor result as a reason to talk to a broker, not as a rejection.

This tool provides estimates only, does not constitute financial advice, and is not a pre-approval or proof of qualification. It also does not account for factors a lender will check, including income documentation, employment history, a full credit report, property appraisal and loan limits. Consult a mortgage professional before relying on any of it.

What Is Mortgage Qualification?

Before a lender approves your mortgage, they check whether your income can comfortably cover your housing costs and existing debts. This check comes down to two ratios: the Gross Debt Service Ratio (GDSR) and the Total Debt Service Ratio (TDSR). This tool calculates both, using the same thresholds lenders apply.

GDSR and TDSR Explained

Your GDSR measures housing costs (mortgage payment + property tax + heating + strata fees, plus monthly PMI in the US) as a percentage of your gross monthly income. In Canada, lenders generally require this to be under 32%. In the US, the threshold is typically 28%.

The two countries treat mortgage insurance differently, and this calculator follows each convention. In Canada, the CMHC premium is a one-time charge added to your mortgage balance and paid off over the amortization. In the US, PMI is an annual premium billed monthly alongside your payment — it is not financed into the loan, and it generally cancels once you reach 20% equity.

Your TDSR adds all other monthly debts (car payments, credit cards, student loans) on top of housing costs. The Canadian limit is 44%; in the US, it's 43%. Both ratios must pass for you to qualify.

When there are two applicants, lenders underwrite the combined gross income of everyone on the application — how the income is split between borrowers doesn't change either ratio. Two applicants earning $68,000 and $75,000 are assessed the same as one applicant earning $143,000. Credit is the exception: lenders typically use the lowest score among applicants, not an average.

Mortgage Insurance: CMHC vs. PMI

If your down payment is less than 20%, you'll need mortgage insurance. In Canada, this is provided by CMHC — premiums range from 2.8% to 4.0% of the loan amount, and it's not available on properties over $1,500,000. In the United States, Private Mortgage Insurance (PMI) applies with annual rates from 0.5% to 1.75%, with no maximum property price. The two work differently: the CMHC premium is a one-time charge added to your mortgage balance and amortized over the loan, while PMI is an annual premium billed monthly (and it drops off once you reach 20% equity) — it is not added to the loan. This tool applies the correct model for your selected country automatically.

Why This Matters for Rent-to-Own

If you're in a rent-to-own agreement, your goal is to qualify for a mortgage by the end of the lease term. This tool shows you exactly where you stand today — and what income level, debt reduction, or down payment milestones you need to hit. Use the Rent-to-Own Calculator to model how your down payment grows during the lease, then come here to check whether you'll qualify at the end.

Privacy First

Like all RTOCalc tools, this runs entirely in your browser. No data leaves your device.

Related Tools

Use the Rent-to-Own Calculator to model a lease-option deal, or the Amortization Calculator to see your full mortgage payment schedule. Need personalized help? Explore our professional services or read the FAQ.