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?

{{calculator.geo.selectedMunicipality}}, {{calculator.geo.selectedProvince}}

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 also another important piece of information to help determine affordability. Depending on the purchase price of a home, there are minimum amounts required for your down paymentNote 2:

Table - Minimum amount of downpayment required based upon the purchase price of the home
Purchase price of your home Minimum amount of your down payment
Less than $500,000 5% of the purchase price
$500,000 to $999,999 5% of the first $500,000 of the purchase price
10% for the portion of the purchase price above $500,000
$1 million or more 20% of the purchase price

Keep in mind that if your down payment is less than 20% of the price of your home, you'll need to purchase mortgage default insurance, which can be added to the principal amount of your mortgage.

Sources:

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

Note 2Government of Canada, 2019




Navigate up to edit previous step

Step 2 of 6

What kind of home are you looking for?

{{calculator.propertyType == 'house' ? 'House' : '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.




Navigate up to edit previous steps

Step 3 of 6

What is your annual income?

! Please enter an amount between $1.00 and {{income.maxIncome|currency:'$':'0'}}.
If your annual household income before taxes is greater than {{income.maxIncome|currency:'$':'0'}}, 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.




Navigate up to edit previous steps

Step 4 of 6

How much do you have for a down payment?

! Please enter an amount less than {{downpayment.maxDownpayment | currency: '$':'0'}}. ! Please enter an amount greater than $1,000.

Your down payment affects the amount you can borrow to buy a home and the size of your payments. This will impact your monthly budget.

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

If the home purchase price is between $500,000 and $999,999.99, you must have at least 5% for the first $500,000 and 10% for the remaining amount.

For home prices $1 million or over, the down payment must be 20%.

If you are a first-time home buyer, you can borrow up to $25,000 from your RSP towards your down payment.1

1. First time home buyers can withdraw up to $25,000, in a calendar year, from their RSPs for a home purchase (up to $50,000 for a couple). They then have 15 years to repay their RSP (other conditions apply). Find out more about the RSP Home Buyers' Plan.




Navigate up to edit previous steps

Step 5 of 6

What monthly expenses do you have?

Estimate your monthly expenses such as groceries, transportation, child care, insurance, shopping, media and regular contributions to savings.

Please do not include rent or housing expenses.

If you're buying a home with a spouse, partner, friend or family member, include their monthly expenses as well.

If this amount is higher than your monthly income before taxes, please contact us to discuss your options.




Navigate up to edit previous steps

Step 6 of 6

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

! 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.