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Ontario home affordability calculator
Enter your assumptions to see an estimate. Calculations are educational and do not replace lender, legal, tax or accounting advice.
Estimate
- Estimated maximum purchase priceThe highest price found by the calculator using your income, debts, cash down payment, housing costs and qualifying-rate assumptions. It is not a lender approval.
- $706,000
- Cash down payment usedThe smaller of your entered available cash and the estimated purchase price. Keep separate cash for closing costs and emergencies.
- $100,000
- Minimum down payment at that priceThe minimum amount calculated from Canadian down-payment bands: 5% on the first $500,000, 10% on the portion up to $1.5 million, and 20% at $1.5 million or above.
- $45,600
- Estimated mortgage default-insurance premium (3.10% of base mortgage)For an eligible purchase with less than 20% down, the premium is based on the loan-to-value band. It is generally added to the mortgage and then accrues interest.
- $18,786
- Ontario 8% RST on insurance premium, payable at closingOntario retail sales tax on the insurance premium is paid in cash at closing; it is not added to the mortgage.
- $1,503
- Estimated mortgage, including default insurance if applicableThe base mortgage plus the modeled insurance premium. This is the amount used for the payment estimate.
- $624,786
- Estimated mortgage payment at your rateEstimated principal-and-interest payment at the contract rate and amortization you entered. It excludes property tax, utilities, maintenance and other costs.
- $3,473/month
- Qualifying rate used for the affordability screenThe calculator uses the greater of your entered rate plus 2 percentage points or 5.25% for its qualifying-payment screen. Lenders apply current rules and their own review.
- 6.50%
- Estimated housing cost including tax, heat and condo feesContract-rate mortgage payment plus the entered monthly property-tax estimate, heating and condo fees. Other ownership costs are not included.
- $4,123/month
- Estimated GDS / TDS at the qualifying paymentGDS compares qualifying housing costs with gross income. TDS adds your entered monthly debt payments. The displayed ratios use this calculator’s screening assumptions.
- 38.9% / 38.9%
This is a planning estimate, not a mortgage approval or promise to lend. Lenders verify income, debts, credit, property eligibility, insurance eligibility and their own lending rules. Insurance protects the lender against borrower default; it does not protect you from missed payments. The insurer premium is generally financed with the mortgage, while Ontario’s 8% RST is paid at closing and cannot be financed. Sources: FCAC: down payments and mortgage loan insurance, CMHC: premium schedule, Ontario: 8% RST.
How this affordability estimate works
It first estimates a monthly housing budget from gross household income and your entered debts. It then subtracts property tax, heating and condo fees, and solves for a purchase price whose qualifying mortgage payment fits the remaining amount. Your available down payment and minimum-down-payment rules set a second limit; the lower limit is shown.
Why a down payment below 20% changes the estimate
For eligible homes priced below $1.5 million, a down payment under 20% generally means mortgage default insurance is required. The premium depends on the mortgage’s loan-to-value ratio. It is usually added to the loan, so interest is paid on it over time. Ontario’s 8% retail sales tax on the premium is payable at closing and must be budgeted as cash. This insurance protects the lender, not the homebuyer.
What the monthly figures include
The mortgage payment covers estimated principal and interest. The housing-cost figure adds the property-tax estimate, heating and condo fees you entered. It does not include home insurance, electricity, water, repairs, maintenance, closing costs or changes in interest rates. Add those to your personal budget before deciding what feels affordable.
What to do next
- Use current property-tax and condo-fee figures for the kind of home you are considering.
- Keep money aside for land transfer tax, legal fees, moving costs, the insurance tax if applicable and an emergency reserve.
- Ask a mortgage professional to verify the qualifying amount, down-payment source, insurance eligibility and payment before you make an offer.
Minimum down-payment estimate: 5% on the first $500,000; 10% on the portion above $500,000 and below $1.5 million; and 20% for purchases at $1.5 million or more. Eligibility and insurer rules apply. Estimate closing costs · Estimate land transfer tax.