How Much Home Can You Afford?
Income
Down Payment & Debts
Mortgage Details
How the Affordability Calculator Works
Canadian lenders use two key ratios to determine how much you can borrow:
Gross Debt Service (GDS) Ratio — Max 39%
Your housing costs (mortgage payment + property tax + heating + 50% of condo fees) should not exceed 39% of your gross monthly income.
Total Debt Service (TDS) Ratio — Max 44%
Your total monthly debt obligations (housing costs + car payments + student loans + credit card minimums + other debts) should not exceed 44% of your gross monthly income.
The Stress Test
All Canadian mortgage applicants must qualify at the higher of 5.25% or their contract rate plus 2%. This calculator uses the rate you enter — to simulate the stress test, enter the qualifying rate (your rate + 2% or 5.25%, whichever is higher).
Factors That Affect How Much You Can Afford
- Income — Higher income means a higher maximum purchase price
- Existing debts — Monthly debts reduce your borrowing capacity
- Interest rates — Lower rates mean higher affordability
- Down payment — A larger down payment adds directly to your purchasing power
- Property taxes — Higher property taxes reduce the amount left for mortgage payments
- Condo fees — 50% of condo fees count toward your GDS ratio
Mississauga Property Tax Rates
Property taxes in Mississauga are determined by the City of Mississauga and the Region of Peel. Typical residential property tax rates are approximately 0.8% to 1.0% of the assessed home value. For a $750,000 home, expect annual property taxes of approximately $6,000 to $7,500.