Tools
How Much House Can I Afford?
Based on Canadian lending rules (GDS/TDS ratios) and the current stress test rate.
Bank of Canada Posted Rates
As of May 14, 2025 · Source: Bank of Canada
BoC Policy Rate
2.25%
Prime Rate
4.45%
Posted 5yr Fixed
6.09%
Your Financial Picture
Before taxes. Include all qualifying income.
Cash available for down payment.
Car payments, student loans, credit card minimums, lines of credit.
Your quoted or expected mortgage rate.
Leave at $0 for freehold properties. 50% counts toward GDS.
You can afford up to
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How Canadian Affordability Works
GDS ratio (≤ 32%): Your housing costs (mortgage payment + property tax + heating + 50% of condo fees) can't exceed 32% of your gross monthly income.
TDS ratio (≤ 44%): Housing costs plus all other debt payments (car, student loans, credit cards) can't exceed 44% of gross income.
Stress test: You must qualify at the higher of your contract rate + 2% or the Bank of Canada's posted 5-year rate (6.09%). This ensures you can handle rate increases.
Edmonton Assumptions
Property tax: Estimated at 0.82% of home value — Edmonton's typical effective rate. Your actual rate varies by assessed value and location.
Heating: Estimated at $200/month year-round average, reflecting Edmonton's climate. Lenders use this in qualification.
This is an estimate. Lenders may use different ratios, income calculations, or heating costs. Get pre-approved for your actual number.