Get a Realistic Estimate of Your Maximum Mortgage and Purchase Price
Before you begin your 2025 home search, our comprehensive Ontario mortgage affordability calculator provides the clear, instant answer you need.
Unlike basic estimators, this tool gives you a truly realistic budget by automatically factoring in the official Canadian mortgage stress test, your personal GDS/TDS ratios, and a detailed estimate of all closing costs.
We've even included specific property tax and land transfer tax calculations for buying a home in Ontario. Use this tool to understand your true buying power, search with confidence, and take the first critical step towards your mortgage pre-approval.
Frequently Asked Questions (FAQ)
1. How is this calculator different from the one on my bank's website?
Most bank calculators provide a very basic, often misleading estimate because they don't include three critical factors: the mandatory Canadian mortgage stress test, your complete debt profile (GDS/TDS ratios), and a realistic estimate of closing costs.
Our calculator is designed to give you a true picture of what lenders will approve you for, preventing surprises down the road.
2. How does the mortgage stress test actually work in Ontario?
The stress test ensures you can still afford your mortgage if interest rates rise. To qualify, you must prove you can make payments based on the minimum qualifying rate, which is the higher of either 5.25% or your contract interest rate plus 2%.
Our calculator automatically applies this 2025 stress test rule to determine your realistic borrowing power.
3. What are GDS and TDS ratios and why do they matter?
These ratios are what lenders use to assess your risk.
Gross Debt Service (GDS): The percentage of your gross income needed for housing costs (mortgage, property tax, heat). Lenders want this below 39%.
Total Debt Service (TDS): The percentage of your income for housing costs plus all other debts (car loans, credit cards, etc.). This must be below 44%. Our calculator shows you these ratios so you know where you stand before you even apply.
4. Do I really need a 20% down payment in Ontario?
No, you don't always need 20%. For properties under $1 million, you can buy with as little as 5% down for the first $500,000 and 10% for the portion above that.
However, any down payment under 20% requires you to pay for mortgage default insurance (like CMHC). A 20% down payment helps you avoid this extra cost. You can explore both scenarios by adjusting the down payment in the calculator above.
5. What are closing costs and how much should I budget?
Closing costs are one-time fees paid when you finalize the home purchase, typically ranging from 1.5% to 4% of the purchase price.
They include the Ontario Land Transfer Tax (which is doubled if buying in Toronto), legal fees, and title insurance. Our calculator provides a detailed estimate, so you're not caught off guard by these significant expenses. For a full breakdown, [link to your blog post on closing costs].
6. How much income do I need to buy an average home in Whitby or the Durham Region?
As of mid-2025, the average home price in the Durham Region requires a substantial household income. While the exact amount depends on your down payment and existing debts, a family would typically need an income well over $150,000.
The best way to know for sure is to input your specific income, down payment, and debts into the calculator above to get a personalized affordability estimate.
7. What is a mortgage pre-approval and how is it different from this calculator?
This calculator provides a highly accurate estimate to guide your search. A mortgage pre-approval is the next official step. It involves a formal application where I, as your mortgage agent, verify your income and credit with a specific lender.
This results in a certificate that locks in an interest rate for you for 90-120 days and proves to sellers that you are a serious, qualified buyer. Ready to take that step? [link to your "Book a Consultation" page].