What are GDS and TDS in a Canadian mortgage qualification?

Gross Debt Service compares qualifying housing costs with gross household income. Total Debt Service adds other monthly debt obligations. CMHC uses maximum planning thresholds of 39% GDS and 44% TDS for its insured homeownership programs.

What mortgage stress-test rate does this calculator use?

The calculator uses the greater of the entered contract rate plus 2 percentage points or 5.25%, matching the current federal minimum qualifying rate framework used for mortgage stress testing.

Do condo fees count toward mortgage qualification?

CMHC guidance includes 50% of condominium fees in the GDS and TDS calculations. The calculator follows that treatment for the condo-fee amount entered.

Is this mortgage qualification result a pre-approval?

No. It is an educational planning estimate. A lender or licensed mortgage professional can assess credit, income documentation, property details, debt treatment, insurer rules and lender-specific underwriting before issuing an approval.

What debts should I include for TDS?

Include recurring monthly obligations that a lender may consider, such as vehicle loans or leases, lines of credit, student loans, credit-card obligations and child or spousal support. Actual lender treatment can differ.

Can a 30-year amortization be used with an insured mortgage?

Federal reforms effective December 15, 2024 expanded 30-year insured amortizations to all first-time home buyers and all buyers of new builds, subject to program and lender eligibility. Other 30-year structures may also exist with at least 20% down, subject to the lender.

How is mortgage qualification different from a comfortable monthly budget?

Qualification estimates a lender-style borrowing ceiling using gross income, debts and housing costs. A comfortable monthly budget uses your real after-tax income and household spending. The two numbers should be reviewed separately.

Mortgage Readiness Tool

Mortgage Qualification Calculator

Stress-test your assumptions before you confuse a listing price with an affordable purchase price.

Mortgage Qualification Calculator

Gross household income / year

Start here: enter total household income before tax that you expect a lender to consider. Down payment available

Next: enter the cash available for the down payment, excluding closing costs.

Interest rate

Next: use your actual quoted rate, or review the Rate Board starting point. RBC starting rate 4.89% · Sep 14, 2026. Amortization Buyer situation

Property tax monthly

Next: enter a monthly property-tax estimate for the type of home and area you are considering. Heating cost monthly

Next: enter the expected monthly heating cost used in the qualification scenario. Condo fee monthly · optional ?

Other debt payments monthly · optional ?

Enter household income first. The calculator will guide you through the core qualification inputs.

Mortgage qualification questions

What are GDS and TDS?

GDS compares qualifying housing costs with gross household income. TDS adds other monthly debt obligations. This calculator uses the 39% GDS and 44% TDS planning ceilings published by CMHC.

CMHC GDS / TDS guidance →

What rate does the mortgage stress test use?

The qualifying rate is the greater of your contract rate plus 2 percentage points or 5.25%. The selected interest rate remains editable because your actual quote matters.

OSFI minimum qualifying rate →

Why does the calculator use only half of the condo fee?

CMHC debt-service guidance includes 50% of condominium fees in GDS and TDS. Property tax and heating costs are included separately.

CMHC calculation guidance →

Is this a mortgage pre-approval?

No. This is an educational planning estimate. Credit, income verification, the property, lender policy, debt treatment and insurer rules can change an actual approval.

Government of Canada mortgage preparation →

Illustrative qualification purchase price — Stress-test planning estimate only. This is not a pre-approval and not a recommended spending target.

Estimated mortgage incl. insurance—

Stress-test rate used—

GDS at modeled maximum—

TDS at modeled maximum—

Mortgage payment at selected rate—

Mortgage payment at stress-test rate—

Gross household income / month—

Housing costs used in GDS—

Other monthly debt used in TDS—

Minimum down payment at modeled price—

Estimated mortgage-insurance premium—

Primary modeled constraint—

Enter the core qualification inputs to see the planning estimate.

Canadian mortgage qualification estimate using GDS, TDS and the stress test

This calculator works backward from gross household income, recurring debt, down payment and estimated property costs. It applies the current federal stress-test rate and CMHC-style GDS/TDS planning ceilings to estimate an illustrative purchase-price ceiling. Use the result as a financing discussion starting point—not as a comfortable monthly budget or lender commitment.

Next planning step

Qualification is not the same as a comfortable monthly budget.

After you see the lender-style range, test the same home price against your after-tax income, maintenance, utilities, transportation, food and other household spending.

Affordability & Monthly Cost →Review My Scenario With Manroop

Common Ontario mortgage questions

Quick answers before you send your scenario.

What debts should I include in TDS?

Include recurring monthly obligations a lender may consider, such as vehicle loans or leases, credit-card obligations, lines of credit, student loans and child or spousal support. Actual lender treatment can differ by debt type.

Government of Canada guidance →

Does credit score or income documentation change qualification?

Yes. Debt-service ratios are only part of underwriting. Credit history, employment and income documentation, the property, source of down payment and lender or insurer requirements can affect the final decision.

CMHC purchase-program guidance →

Can I use a 30-year amortization?

For an insured high-ratio purchase, this calculator allows the 30-year scenario when you select First-time buyer or New-build buyer, reflecting federal reforms effective December 15, 2024. With at least 20% down, 30-year lending can also depend on the lender and product.

Federal mortgage-reform summary →

Why can two lenders give me different qualification amounts?

Lenders can differ in how they verify income, calculate debt payments, treat rental or bonus income, assess the property and apply internal risk policy. The federal stress-test floor does not make every underwriting decision identical.

OSFI stress-test framework →

Should I spend up to the qualification amount?

Not automatically. Qualification is a financing ceiling, while a comfortable budget should also reflect your after-tax income, home maintenance, utilities, transportation, food, savings goals and lifestyle costs.

Use the Affordability & Monthly Cost Calculator →

Which official sources are used for this calculator?

The qualification logic is based on current federal mortgage stress-test guidance and CMHC debt-service treatment. Always confirm the final scenario with the lender or mortgage professional reviewing your application.

OSFI — Minimum qualifying rate →
CMHC — GDS / TDS calculation →
Canada.ca — Preparing to get a mortgage →

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