Calculator
Maximum mortgage qualifier.
How qualification actually works in Canada
Lenders qualify you against two ratios: GDS (Gross Debt Service) caps your housing costs at roughly 39% of gross income; TDS (Total Debt Service) caps housing plus all other debt at roughly 44%. Both ratios are run at the federal stress-test rate, the higher of your contract rate plus 2% or the OSFI-set floor of 5.25%. The lower of the two ratio-derived mortgage amounts is your maximum. KARAKTER's calculator follows the same logic.
What this calculator assumes
- GDS ratio cap: 39% of gross monthly income.
- TDS ratio cap: 44% of gross monthly income.
- Stress-test rate: max(contract rate + 2%, 5.25%).
- Heat is included as-entered in GDS/TDS housing costs.
- Property tax is converted to monthly and included in housing costs.
- Canadian semi-annual compounding for the payment math.
- The result is a mortgage amount. With less than 20% down the home must be priced below $1.5 million to be insured, and the minimum down payment is 5% of the first $500,000 plus 10% of the rest.
Frequently asked questions
What is the federal mortgage stress test?
You must qualify at the higher of your contract rate + 2% or the OSFI-set floor (5.25%). It applies to almost every federally regulated Canadian mortgage and is the single biggest factor in your maximum.
What are GDS and TDS?
GDS = housing cost ÷ gross income (cap ~39%). TDS = (housing + other debt) ÷ gross income (cap ~44%). Both must pass at the stress-test rate.
Why is my pre-qualification different from my pre-approval?
Pre-qualification is an estimate. Pre-approval is a documented lender commitment with a held rate and is required before any serious Calgary property search.
Can KARAKTER recommend a Calgary mortgage broker?
Yes. Ryan works with several Calgary mortgage brokers across major-bank, monoline, and credit-union channels. Ask on a 15-minute call.
Educational calculator. Real qualification depends on credit, lender, source of down payment, and current OSFI rules. Get a real pre-approval before house-hunting.
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