How much home could you afford?

Your affordable mortgage depends on income, debts, down payment, property taxes, heating costs, interest rate and amortization. Canadian lenders also apply debt-service ratios and the mortgage qualifying rules, so the calculator gives an estimate rather than a lending commitment.

Salary is only one part of the calculation. Two people with the same income can have very different borrowing capacity depending on monthly debts, down payment and housing costs, so include those inputs for a more realistic estimate.

Monthly debt payments reduce the income available for housing and increase your total debt-service ratio. Car loans, credit cards, lines of credit and other recurring obligations can therefore reduce the mortgage amount you may qualify for.

Usually, yes. A larger down payment reduces the mortgage required and may also reduce or eliminate mortgage default insurance, but income and debt-service limits still determine how much a lender may approve.

An affordability calculator is an estimate based on the information you enter. A pre-approval is performed by a lender and may include income verification, credit review and other underwriting checks, so it is a stronger indication of potential borrowing capacity.