How this calculator works
Use a known payment budget or estimate one from gross income, GDS and TDS limits. Income mode defaults to CMHC's published 39% and 44% ratios and can use the greater of contract rate plus two percentage points or 5.25%. This conservative budget also deducts home insurance, tax, heat and half the condo fee before sizing the loan. Cash covers closing costs first. Mortgage insurance premiums and minimum down-payment eligibility are excluded, so the result is a planning ceiling, not approval.
Formula
Housing limit = min(gross income × GDS, gross income × TDS - other debt). Available P&I = housing limit - carrying costs. Mortgage = available P&I / payment per dollar of loan. Price = (mortgage + cash) / (1 + closing cost share). Down payment = cash - price × closing cost share.
Worked example
With a $2,500 monthly budget, $3,600 tax, $1,200 insurance and $100 monthly heating, $2,000 remains for P&I. At 0% over 240 months without the stress-rate option, this supports $480,000 borrowing. With $100,000 cash and 2% closing costs, the price ceiling is $568,627.45.
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Frequently asked questions
Is this a preapproval?
No. Credit, income verification, minimum down payment, insurance, property type and lender policies still need assessment.
Why is only half the condo fee used?
That matches the common Canadian debt-service treatment. Your personal cash budget still pays the entire fee.
Can I use a US rate convention?
Select monthly compounding and enter appropriate local budget ratios. The Canadian qualifying-rate option should be disabled when it does not apply.