How lenders qualify you
- Stress test: you must qualify at the higher of your contract rate + 2% or 5.25%.
- GDS (mortgage + property tax + heat + half of condo fees) ≤ 39% of gross income.
- TDS (GDS + all other debts) ≤ 44%.
- Heating is assumed at $100 a month. Canadian fixed mortgages compound semi-annually.
Minimum down payment
| Purchase price | Minimum down |
|---|---|
| Up to $500,000 | 5% |
| $500,000 – $1,499,999 | 5% of first $500,000 + 10% of the rest |
| $1.5 million or more | 20% (no insurance available) |
FAQ
How much house can I afford on $120,000 in Canada?
With $400 of other debts and $80,000 down, roughly a $609,000 home at a 4.2% rate (qualifying at 6.2%).
What is the stress test rate?
The greater of your contract rate plus 2 percentage points or 5.25%.
Sources (checked Nov 6, 2026): OSFI Guideline B-20 (minimum qualifying rate); CMHC GDS/TDS limits; Department of Finance mortgage rules (December 15, 2024).