Find out how much mortgage you can afford

We’ll help you figure out what home price you may be able to afford.

Ready to start looking for your dream home? Don’t just dream about it – let the TD Mortgage Affordability Calculator help you begin your search. Enter a few key details and the calculator will guide you in determining, with confidence, what house price may be within reach.

Step 1 of 6

Where do you want to live?

,

How much mortgage can I afford?

The first step in searching for your home is understanding how large of a mortgage you can afford. With a few inputs, you can determine how much mortgage you may be comfortable with and the potential price range of your future home. Knowing your total household income, how much you’ve saved for a down payment, and your monthly expenses (car payments, loan payment, living expenses, and so on), plus new expenses you’d take on (property taxes, condo fees, utilities), you can get a reasonable estimate. Learn more about factors that can affect your mortgage affordability.

How to estimate affordability

To estimate mortgage affordability, lenders will use two standard debt service ratios: Gross Debt Service (GDS) and Total Debt Service (TDS). According to the Canadian Mortgage and Housing CorporationNote 1:

List of 2 items
  • - GDS is the percentage of your monthly household income that covers your housing costs (including mortgage payments, condo fees, utilities and taxes). It should be at or under 35% of your pre-tax household income.

  • - TDS is the percentage of your monthly household income that covers your housing costs and any other debts (including car payments and other loan expenses). It should be at or under 42% of your pre-tax income.

How your down payment affects affordability

The amount you have saved for a down payment is an important piece of information to help determine affordability. The minimum down payment required will depend on the home value.Note 2

See table below for details:

Table - Minimum amount of downpayment required based upon the purchase price of the home
Home ValueNote 3

Minimum down payment required
Up to $500,000 5% of the home valueNote 4

$500,000 to $1,499,999 5% of the first $500,000Note 4


10% of the home value above $500,000Note 4
$1,500,000 or more 20% of the home valueNote 5

If your down payment is less than 20% of your home value, you will need to pay for mortgage default insurance. The insurance premium can be added to your mortgage amount.

Note 1 Canada Mortgage and Housing Corporation (CMHC), 2020

Note 2 Government of Canada, 2019

Note 3 Lesser of purchase price or valuation.

Note 4 Mortgage default insurance is required.

Note 5 Mortgage default insurance is required in certain circumstances. Talk to your mortgage specialist to determine if this applies to you.




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Step 2 of 6

Are you a first-time home buyer and/or interested in purchasing a new construction home?

No

First-time home buyer

To be considered a first-time homebuyer, a borrower must meet one of the following criteria:

  • - The borrower has never purchased a home before; or
  • - In this calendar year, and in the prior 4 calendar years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned, or
  • - The borrower recently experienced the breakdown of a marriage or common-law partnership. The borrower must have been living separate and apart from their spouse for at least 90 days, and they must not have a new spouse or common-law partner who owns a home that is their principal place of residence.

New construction home

To be considered a newly constructed home, the new home must not have been previously occupied for residential purposes. This requirement is not intended to exclude newly constructed condominiums where there has been an interim occupancy period.




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Step 3 of 6

What kind of home are you looking for?

Condo

Different property types have different fees and fixed costs. For example, when you purchase a house, you can pay property taxes but you need to manage your own maintenance. A condominium has condo fees and property taxes, but the condo fees may take care of the maintenance costs.




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Step 4 of 6

What is your annual income?

$0

! Please enter an amount between $1.00 and $500,000.
If your annual household income before taxes is greater than $500,000, please contact us to discuss your home-buying options.

Your annual income is the amount you earn before taxes, also known as the gross amount. If you’re buying a home with others, include their annual income before taxes as well.




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Step 5 of 6

How much do you have for a down payment?

$1,100

! Please enter an amount less than $1,000,000. ! Please enter an amount greater than $1,100.

You must have at least 5% for a down payment if the home value is less than $500,000.

If the home value is between $500,000 and $1,499,999.99, you must have at least 5% for the first $500,000 and 10% for the remaining amount.

For homes valued at $1.5 million or over, the down payment must be at least 20%.

If you are a first-time home buyer, you can borrow up to $60,000 from your RSP towards your down payment.Note 1

1. First time home buyers can withdraw up to $60,000 in a calendar year from their RSPs for a home purchase (up to $120,000 for a couple). They then have 15 years to repay their RSPs (other conditions apply). Find out more about the RSP Home Buyers' Plan.




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Step 6 of 6

What are your monthly payments for loans, car loans, leases, lines of credit and credit cards?

$0

! Please enter an amount less than 50% of your monthly income before taxes.

Make sure to also include monthly payments for anyone who is buying the home with you.

If your current monthly debt payments are more than 50% of your monthly income before taxes, please contact us to discuss your options.

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