How is it calculated?
Lenders cap housing costs at 39% of gross income (GDS) and all debts at 44% (TDS), tested at the qualifying rate: the greater of your rate + 2% or 5.25%. We solve for the largest mortgage that fits both, then check the minimum down payment.
What should I do with the result?
Use it to set a budget or a target rate, then let lenders bid on your actual mortgage. Bids include rate, penalty method, prepayment and fees, so you can compare the full cost.
Frequently asked questions
How much mortgage can I afford on $100,000?
Roughly $400,000 to $450,000 with modest debts, depending on rate, taxes and down payment. Use the calculator for your numbers.
Do lenders use gross or net income?
Gross income before tax.
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
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