On a $100,000 gross income with no other debts and $600 a month of property tax and heating, the 39% limit allows a payment of $2,650 and a mortgage of about $453,309 at 5% over 25 years.
| Annual income | Max payment | 4% | 5% | 6% | 7% |
|---|---|---|---|---|---|
| $50,000 | $1,025 | $194,189 | $175,337 | $159,087 | $145,024 |
| $60,000 | $1,350 | $255,761 | $230,931 | $209,529 | $191,007 |
| $75,000 | $1,838 | $348,119 | $314,323 | $285,193 | $259,982 |
| $90,000 | $2,325 | $440,477 | $397,715 | $360,856 | $328,957 |
| $100,000 | $2,650 | $502,049 | $453,309 | $411,298 | $374,940 |
| $125,000 | $3,463 | $655,979 | $592,295 | $537,404 | $489,898 |
| $150,000 | $4,275 | $809,909 | $731,282 | $663,509 | $604,857 |
| $175,000 | $5,088 | $963,840 | $870,268 | $789,615 | $719,815 |
| $200,000 | $5,900 | $1,117,770 | $1,009,254 | $915,721 | $834,773 |
| $250,000 | $7,525 | $1,425,630 | $1,287,227 | $1,167,932 | $1,064,689 |
How it is computed
Payment = the lower of 39% × monthly income − housing costs (GDS) and 44% × monthly income − debts − housing costs (TDS), with $600 of housing costs and no other debts. Max loan = payment × (1 − (1 + i)^−n) ÷ i, with i the annual rate ÷ 12.
FAQ
What are the GDS and TDS ratios?+
Gross and total debt service ratios: Canadian lenders typically cap housing costs at 39% and all debt payments at 44% of gross income.
Does this include the stress test?+
No. Canadian lenders qualify you at the higher of your rate plus 2 points or 5.25%; read the column about two points to the right for a rough idea.