Enter your gross monthly income, existing debts, and down payment. The 28/36 rule gives a conservative maximum — with context on the CMHC insurance threshold, the stress test, and the First Home Savings Account (FHSA).
A Canadian buyer earning CA$9,000/month gross with CA$400/month in debts and CA$136,000 saved: the 28% housing cap is CA$2,520/month. At 5.8% over 25 years, that services a loan of ~CA$395,000. Add the deposit: maximum affordable price roughly CA$531,000.
Stress-test cross-check: lenders qualify you at the contract rate + 2% (7.8%). At 7.8% over 25 years, CA$2,520/month services only ~CA$325,000. Add the deposit: stress-test max ~CA$461,000. The stress test is the binding constraint in most Canadian markets.
CMHC note: at CA$531,000 with 20% down (~CA$106,000), CMHC insurance is not required. Below 20% down, CMHC insurance premiums of 2.8–4.0% of the insured loan amount are added.
The 28/36 rule gives a conservative baseline. In Canada, OSFI’s B-20 stress test is often the binding constraint: lenders must qualify you at your contract rate plus 2%, meaning the rate you enter should be your contract rate plus 2% for a realistic worst-case maximum price. Enter the stress-test rate in the rate field to see your practical ceiling.
Canadian specifics: Canadian mortgages typically have 5-year terms with 25-year amortisation; the rate is renegotiated at renewal. Properties under $1 million with less than 20% down require CMHC, Sagen, or Canada Guaranty mortgage default insurance. The FHSA (CA$8,000/year, CA$40,000 lifetime) lets first-time buyers save tax-free for their down payment.
OSFI B-20 requires qualification at the higher of: contract rate + 2%, or 5.25% (whichever is greater). This effectively lowers the maximum mortgage you can obtain. Enter contract rate + 2% in the rate field to see your conservative maximum.
CMHC (or equivalent) insurance is required when the down payment is less than 20%. For homes $500k–$999,999: 5% on the first $500k, 10% on the remainder. For homes $1 million+: 20% minimum; insurance not available. Premiums: 2.8–4.0% of the insured loan amount, usually added to the mortgage.
The FHSA allows first-time buyers to contribute CA$8,000/year (CA$40,000 lifetime). Contributions are tax-deductible and qualifying withdrawals for a first home purchase are tax-free. Unused room from the year the account is opened carries forward one year.
Housing costs should not exceed 28% of gross monthly income; all monthly debts should not exceed 36%. In Canada, the OSFI stress test is often a tighter constraint — use both as planning benchmarks.
Yes, through the Home Buyers’ Plan (HBP): withdraw up to CA$35,000 from your RRSP tax-free for a first home purchase. The amount must be repaid to the RRSP over 15 years or it is included in your taxable income. The FHSA is generally more flexible and does not require repayment.
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