Discover how much home you can qualify for based on your income, debts, and the federal stress test.
Maximum Home Price
$527,119
Debt Service Ratios
This calculator determines the maximum home price you can afford by solving for the largest mortgage where both your Gross Debt Service (GDS) ratio stays at or below 39% and your Total Debt Service (TDS) ratio stays at or below 44%.
The federal stress test is applied automatically. You are qualified at the greater of your contract rate plus 2% or the 5.25% benchmark floor. This means even if your actual rate is 4.99%, you must prove you can afford payments at 6.99%.
Housing costs include your mortgage payment (principal and interest), property taxes, heating costs, and any strata or condo fees. These are all factored into the GDS calculation. Your existing debts — car loans, student loans, credit card minimums, and lines of credit — are added for the TDS calculation.
Keep in mind that this is an estimate. Your actual qualification depends on your credit score, employment history, and the specific lender's policies. Contact Ajay for a formal pre-approval that accounts for your complete financial picture.
The federal stress test requires all borrowers to qualify at the higher of their contract rate plus 2% or the 5.25% benchmark rate. This ensures you can handle potential rate increases. It applies to all insured and uninsured mortgages from federally regulated lenders.
GDS (Gross Debt Service) is the percentage of your gross income needed to cover housing costs — mortgage payment, property tax, heating, and condo fees. TDS (Total Debt Service) adds all other monthly debt obligations. Lenders generally cap GDS at 39% and TDS at 44%.
Yes. Adding a co-applicant's income increases your combined gross income, which directly raises the maximum mortgage you can qualify for under GDS and TDS limits. Both applicants' debts are also included in the TDS calculation.
Some lenders and mortgage insurers allow exceptions up to 44% GDS and 49% TDS for strong borrowers — those with excellent credit scores, significant assets, or stable employment. Ajay can help you explore exception-based lending if needed.
Get a formal pre-approval and find out exactly how much home you qualify for.