Planning tool
What can you actually afford in Ontario?
This calculator uses the same mechanics a lender does — the stress-tested qualifying rate, gross and total debt service ratios, property tax, heating and condominium fees — and then adds an itemized Ontario closing cost estimate. It produces a planning range, not an approval.
Your numbers
Every field is optional and can be an estimate. Change anything and the results update immediately.
Bonus, part-time, recognized rental or support income.
Car loans, lines of credit, student loans, credit-card minimums, support payments.
Leave at zero and we will estimate using a typical Ontario rate.
Enter zero for freehold properties.
Illustrative purchase-price range
$534,000 – $607,000
Calculated at a stress-tested qualifying rate of 6.79% — the greater of your contract rate plus two per cent, or 5.25 per cent. Your limiting factor in this scenario is GDS.
Approximate mortgage payment
$3,037/mo
At your 4.79% contract rate over 25 years
Estimated monthly housing cost
$3,592/mo
Mortgage, property tax, heat and condo fees
Mortgage amount
$517,000
Plus $16,027 default insurance premium
Payment at qualifying rate
$3,665/mo
What the lender tests you against
Down-payment guidance
- Your down payment
- $90,000
- As a percentage of the top of your range
- 14.8%
- Minimum required at that price
- $35,700
- Default mortgage insurance
- Applies — approx. $16,027
The federal minimum is 5% on the first $500,000, 10% on the portion from $500,000 to $1.5 million, and 20% at $1.5 million and above. Default mortgage insurance is required below 20% down and is typically added to the mortgage. Program rules can change.
Estimated closing costs
At $607,000 — these are paid on top of your down payment.
- Ontario land transfer tax
- $8,615
- First-time buyer rebate(s)
- − $4,000
- Legal fees and title insurance (estimate)
- $2,200
- Home inspection and appraisal (estimate)
- $800
- Adjustments and moving (estimate)
- $1,500
- Estimated total
- $9,115
What this calculation assumes
- · Lenders test your housing costs against a gross debt service ratio of about 39% and total debt service of about 44% of gross income. Individual lender and insurer limits vary.
- · Qualification uses a stress-tested rate, not your contract rate, which is why the number here is usually lower than a simple payment calculator suggests.
- · Property tax defaults to roughly 0.9% of the purchase price annually when you leave the field at zero. Actual municipal rates differ across Ontario.
- · Half of your condo fees are typically included in the debt-service calculation; the full amount is shown in your monthly housing cost.
- · Heating is estimated at a nominal monthly amount, as lenders require in the calculation.
- · Closing costs are planning estimates. Your real estate lawyer will provide exact figures.
Ready for a number you can act on?
This calculator does arithmetic. A qualification review looks at how your income is documented, which lenders fit your scenario, and what your file actually supports. Your inputs carry over automatically.
Understanding the numbers
Calculator questions, answered
Why is this number lower than other calculators show?
Because it applies the stress test. Canadian lenders qualify you at the greater of your contract rate plus two per cent or 5.25 per cent, not at the rate you would actually pay. Calculators that use only your contract rate produce a friendlier number that a lender will not honour. This tool also includes property tax, a heating allowance and a portion of condominium fees in the debt service calculation, as lenders do.
What are GDS and TDS ratios?
Gross debt service is the share of your gross income consumed by housing costs — mortgage payment, property tax, heat and typically half of condominium fees. Total debt service adds your other obligations such as car loans, credit-card minimums, lines of credit, student loans and support payments. Lenders commonly work to limits around 39 per cent GDS and 44 per cent TDS, though individual lender and insurer limits vary.
Is the result a pre-approval?
No. This is an illustrative estimate produced from the numbers you typed in. It is not a pre-approval, an application, a commitment or a rate quote, and it does not involve a lender or a credit check. A real qualification review looks at how your income is documented, what your credit and property look like, and which lenders fit.
How accurate are the closing cost estimates?
Land transfer tax is calculated using the current Ontario sliding scale, plus Toronto’s municipal land transfer tax when Toronto is selected, and applies first-time buyer rebates when you check that box. Legal fees, title insurance, inspection, appraisal and adjustments are typical planning ranges, not quotes. Your real estate lawyer will provide exact figures.
Does the calculator include default mortgage insurance?
Yes. When your down payment is below twenty per cent, the premium is estimated using standard tiers and added to the mortgage amount, which is how it normally works in practice. Note that in Ontario, provincial sales tax on the premium is payable in cash at closing and is not financed. Purchases at $1.5 million and above require twenty per cent down and cannot be insured.
What should I do with this number?
Treat it as a starting range for conversations with your Realtor, and as the input to a proper review. If the figure is close to what you hoped, a qualification review will confirm what your documentation actually supports. If it is lower, a review will tell you which lever — down payment, debt reduction, income documentation or lender fit — moves it most.
Where a calculator stops
Arithmetic is the easy part of a mortgage.
Every figure above assumes the numbers you entered are the numbers a lender will use. In practice, that assumption is where most files diverge from the estimate. A self-employed buyer’s tax-optimized income is not their qualifying income. Bonus and commission are averaged, not taken at face value. A rental suite counts only if it is legal and documented. A property’s condition can change the terms available even when the borrower is strong.
That is what a qualification review is for: a licensed mortgage professional reading your actual documentation and telling you what the file supports, which lender types make sense, and what to fix before you shop.
Levers that move the number
Reducing monthly debt
Paying off or paying down a car loan or line of credit frees debt service capacity dollar for dollar. Often the single most effective lever available in the short term.
Increasing the down payment
More down reduces the mortgage, the payment tested against your ratios, and potentially the default insurance premium. Crossing twenty per cent removes the premium entirely.
Documenting income properly
Bonus, commission, overtime, rental and self-employment income are often understated in a quick estimate. Correct documentation can materially change the qualifying figure.
Choosing the right lender
Policies differ on income type, credit profile, property type and rental treatment. Lender fit is not a rate question — it is a qualification question.
Extending amortization
A longer amortization lowers the qualifying payment and raises the affordable price, at the cost of more total interest over the life of the mortgage. Availability depends on the lender and whether the mortgage is insured.
Next step
Turn the estimate into a plan.
Provide your documentation through the qualification review and a mortgage professional will respond within one to two business days with what your file actually supports.
A real person reviews your scenario. This platform does not issue automated approvals, and no financing outcome is guaranteed.