How Much House Can I Afford on C$100,000/Year in Canada?
Using Canada's GDS ratio of 32%, a household earning C$100,000 per year can afford a maximum monthly housing cost of C$2667. Under the OSFI stress test, that translates to approximately C$345000 in home purchasing power with 15% down.
C$345000
Max Home Price
C$2667
Max Monthly Housing (GDS)
C$52000
Down Payment (15%)
7.24%
Stress Test Rate
Canada's GDS/TDS Rules vs. US 28/36 DTI
Gross Debt Service (GDS) — 32%
The GDS ratio limits your mortgage principal and interest, property taxes, and heating costs to 32% of your gross monthly income. On C$100,000/year, that is C$2667/month. This is similar to the US "front-end" 28% rule, but set higher at 32% for insured Canadian mortgages.
Total Debt Service (TDS) — 40%
The TDS ratio adds all other monthly debt obligations (car loans, student debt, credit cards) to housing costs. The maximum TDS is 40% for insured mortgages and up to 44% for conventional mortgages — equivalent to the US "back-end" 36% rule but more flexible.
OSFI Stress Test: Canada requires all mortgage applicants to qualify at max(contract rate + 2%, 5.25%). At today's rates, the qualifying rate is 7.24%, even if your actual rate is lower. This significantly reduces maximum purchasing power compared to face-value rate calculations.
Canadian Affordability Calculator
Maximum Home Price
C$345000
Based on GDS 32% at 7.24% stress test rate, 15% down
CMHC Insurance Required
With 15% down, CMHC mortgage insurance applies. At this down payment tier, the CMHC premium is added to your mortgage balance — not paid at closing. Check the current CMHC premium tables (2.80%–4.00% depending on exact down payment) when budgeting.