Mortgage Affordability Ontario. Know Your Number.

Lenders check two ratios and a stress test. GDS (Gross Debt Service) compares your mortgage payment, property tax, heating and 50% of condo fees to your gross income, and most A-lenders look for about 39% or less. TDS (Total Debt Service) adds your other debt payments, and most A-lenders look for about 44% or less. Both are measured at the qualifying rate, which is the higher of your contract rate plus 2% or 5.25%.

You must qualify at the higher of your contract rate plus 2% or 5.25%, even though your actual payment is based on your contract rate. Because the payment used in your ratios is higher than the payment you make, it lowers the mortgage you can qualify for. Our mortgage stress test page covers it in more detail.

As an example, take an $800,000 mortgage over 25 years at the 5.25% minimum qualifying rate. The payment used in your ratio is about $4,770 a month. Add about $500 for property tax and $150 for heating, and housing costs come to roughly $5,420 a month. To keep GDS at 39% or less, that takes a gross household income of about $167,000 a year, before any other debts are counted. Your figure will depend on your qualifying rate, property tax, heating, condo fees and other debts.

GDS (Gross Debt Service) is your monthly housing costs divided by your gross monthly income. Housing costs include your mortgage payment, property tax, heating and 50% of condo fees. Most A-lenders look for a GDS of about 39% or less.

TDS (Total Debt Service) is all your monthly debt payments divided by your gross monthly income. It includes everything in GDS plus car loans, student loans, credit card payments and lines of credit. Most A-lenders look for a TDS of about 44% or less.

Sometimes. Lenders apply income, debt and condo fee rules differently, so the maximum for the same file can differ from one lender to the next. We compare across 50+ lenders and show you which one fits your profile.

Often, but the share that counts varies by lender and by property. Leases or an appraiser's rental estimate are usually required.

Some lenders use your weakest year of declared income. Others average two years of Notice of Assessment income, or consider gross revenue with expense ratios. The right route depends on your documents, and we place your file with the lenders that fit it.

A longer amortization lowers the payment used in your GDS and TDS, so it can raise the mortgage you qualify for, at the cost of more interest over time. Since December 2024, insured mortgages can go to 30 years for first-time buyers and for new builds. Conventional mortgages may offer longer amortizations depending on the lender.

It depends on your gross income, existing debts, down payment, property tax, heating, condo fees, qualifying rate and amortization. Rules of thumb only give a rough range and can mislead. We calculate your maximum across 50+ lenders and show you the numbers. Call (416) 299-6096 or tap Get My Options.