Borrowing Capacity Calculator
Estimate how much you can borrow based on your income, debts, and the mortgage stress test.
1. Your household
Gross (pre-tax) income of all borrowers.
2. Your current debts
What you already repay each month, excluding the target home.
3. The home you’re targeting
The numbers for the property you want to buy.
* Required: employment income. Add a down payment for a realistic purchase price; the other fields refine the estimate.
Understanding your borrowing capacity
Your borrowing capacity is the maximum mortgage a lender will approve. In Quebec it comes down to two ratios (GDS and TDS), the stress test, and your existing debts. Here’s how it’s calculated — and how to raise it.
The two ratios that decide: GDS and TDS
Everything rests on two debt-service ratios, calculated on your GROSS income (before taxes):
- GDS (gross debt service) ≤ 39%: the cost of the target home alone — mortgage + taxes + Hydro + 50% of condo fees.
- TDS (total debt service) ≤ 44%: GDS plus all your other monthly debts (car, cards, lines of credit, student loans, support).
The lender keeps the more constraining of the two — which is why paying off consumer debt often raises your capacity faster than a raise.
The stress test, in plain terms
You’re not qualified at your actual rate, but at the higher of your rate + 2% and a 5.25% floor. This rule applies to every mortgage in Canada, insured or not.
The effect: the payment used in the ratios is inflated, which can cut your capacity by 15–25% versus qualifying at the contract rate. That’s the gap between what you “pay” and what you’re “qualified” on.
The investor’s lever: rental income
If you buy an income property, the share of rent a lender recognizes (often 50–80% of gross rent) is added to your eligible income and raises your GDS and TDS ceilings. In return, payments on your existing mortgages count as debt.
This calculation is often what unlocks a rental purchase: add your eligible rental income to household income, your current mortgage payments to your debts, then run the numbers again.
7 ways to increase your borrowing capacity
- Pay down or consolidate consumer debt: a direct, immediate effect on TDS.
- Increase your down payment: you borrow less and, above 20%, avoid the CMHC premium.
- Extend the amortization (up to 25 years insured, sometimes 30 uninsured) to lower the payment.
- Add a co-borrower with a strong profile: their income is added (their debts too).
- Include eligible rental income if you’re buying a plex.
- Improve your credit score and avoid any new debt before closing.
- Target a home with lower carrying costs (taxes, Hydro, condo): they weigh on GDS.
Common mistakes to avoid
- Calculating on net income: ratios are based on GROSS income.
- Forgetting the stress test and targeting a price you can’t get qualified for.
- Ignoring carrying costs (taxes, Hydro, 50% of condo) that reduce GDS.
- Confusing pre-qualification (an estimate) with pre-approval (a lender commitment, credit checked).
- Making a big credit purchase (car, furniture) just before closing.
How much income for which mortgage? (2026 benchmarks)
Ballpark at a 7% qualifying rate, 25-year amortization, ~$400/month of taxes and Hydro, no other debt. Your debts lower these amounts — a personalized calculation is essential.
| Gross household income | Maximum mortgage (≈) | Benchmark |
|---|---|---|
| $50,000 | ≈ $175,000 | ~$25,000 of income per $100,000 borrowed |
| $60,000 | ≈ $220,000 | ~$25,000 of income per $100,000 borrowed |
| $75,000 | ≈ $290,000 | ~$25,000 of income per $100,000 borrowed |
| $90,000 | ≈ $360,000 | ~$25,000 of income per $100,000 borrowed |
| $100,000 | ≈ $405,000 | ~$25,000 of income per $100,000 borrowed |
| $120,000 | ≈ $500,000 | ~$25,000 of income per $100,000 borrowed |
Purchase price = maximum mortgage + your down payment. Benchmarks computed by WiseRock; check your case with the calculator above.
What this tool gives you
- The maximum purchase price, maximum mortgage, and payment ceiling at the qualifying rate.
- Which ratio (GDS or TDS) limits your file.
- The effect of your eligible rental income on your borrowing capacity.
Worked example (Quebec, 2026)
Household with $90,000 gross income, $4,000 in annual taxes, $100/month Hydro, no other debt, $50,000 down payment, 5% rate over 25 years.
- Qualifying rate (stress test)7% (5% + 2%)
- Limiting ratioGDS (39%)
- Maximum monthly payment at qualifying rate≈ $2,492
- Maximum mortgage≈ $356,000
- Maximum purchase price (with down payment)≈ $406,000
Illustrative example. Actual amounts vary by lender, credit profile, and current rules.