This calculator goes beyond what a bank will approve — it shows you what you can actually afford without derailing your finances. Enter your income, savings, and down payment, and get three price tiers: Conservative (what financial planners recommend), Comfortable (cash-flow based with room for savings goals), and Maximum (what a lender will approve). Works for US and Canada, including the Canadian mortgage stress test and CMHC insurance.
Your Finances
Income and debts determine what lenders will approve and what you can comfortably carry.
Down Payment & Property
Your down payment and property details shape your loan, insurance requirements, and monthly costs.
Rates & Costs
These assumptions power all three tiers. The defaults are good starting points — adjust for your situation.
Calculating your affordability…
Frequently Asked Questions
Common questions about home affordability and mortgages.
How much house can I afford on my salary? +
A useful starting point is the 28% rule: your monthly housing costs (mortgage P&I, property tax, insurance) should not exceed 28% of your gross monthly income. Here are rough estimates by salary at a 6.5% rate with 10% down:
- $60,000/yr → approximately $180,000–$220,000
- $80,000/yr → approximately $240,000–$300,000
- $100,000/yr → approximately $300,000–$375,000
- $120,000/yr → approximately $360,000–$450,000
- $150,000/yr → approximately $450,000–$560,000
These are ballpark figures. Use the calculator above with your exact income, debts, and down payment for a precise answer that accounts for your full financial picture.
What is the 28/36 rule for mortgages? +
The 28/36 rule states that your housing costs should not exceed 28% of gross monthly income (front-end DTI), and your total monthly debt payments should not exceed 36% (back-end DTI). Lenders use these ratios to approve mortgages.
This calculator's Maximum tier uses the 28/36 lender limits. The Conservative tier uses tighter 25%/33% ratios — the level most financial planners recommend for a stress-free budget. The Comfortable tier goes further and ensures your real take-home pay covers all true costs with $300/month left over.
What is the Canadian mortgage stress test? +
The stress test requires Canadian lenders to qualify borrowers at the higher of: their contract rate + 2%, or 5.25% — whichever is greater. So if you get a mortgage at 5%, you must qualify as if the rate is 7%.
This matters because it reduces how much you can borrow. On a $120,000 income, a 5% rate might qualify you for a $700,000 home, but the stress test at 7% might limit you to $580,000. This calculator applies the stress test to the Maximum tier for Canadian users so you see what lenders will actually approve — not just what your rate implies.
How much do I need saved before buying a home? +
Your total cash needed includes more than just the down payment:
- Down payment — minimum 5% in Canada, 3–20% in the US
- Closing costs — 2–5% of purchase price (inspection, appraisal, legal fees, title insurance)
- Land transfer tax — Canada only, varies by province (0.5%–5%)
- Moving and setup costs — $5,000–$15,000 depending on distance and home size
- 3-month emergency reserve — 3× your true monthly housing cost
The savings check section of this calculator adds all of this up automatically and tells you whether your current savings are enough.
What is the difference between pre-approval and what I can truly afford? +
A mortgage pre-approval is a lender's maximum — it tells you how much they will lend based on your gross income and existing debts. It does not account for your actual take-home pay, ongoing savings goals, utilities, maintenance costs, or how much financial buffer you want.
Buying at your maximum pre-approval amount is often a mistake. The Comfortable tier in this calculator is designed to answer the more useful question: given your real cash flow, what price lets you cover all true homeownership costs, keep saving, and still have breathing room each month?