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The price a lender will actually fund — tested at the qualifying rate they'll use, not the rate you'll pay.
You could likely buy up to
$769,000
Your housing cost ratio is the limit here. Lenders cap housing costs alone at 39% of gross income.
This gap is the stress test. It's why approvals come in lower than a simple payment calculation suggests, and it applies whether or not you're putting 20% down.
It's the same arithmetic a lender starts from, but they also look at your credit, how stable your income is, and their own policies on top of the national rules. Get a real pre-approval before you start seeing homes — it costs nothing and it turns this estimate into a number you can offer on.
Land transfer tax, legal fees, title insurance, an inspection and moving costs all land in the same week, and none of them can go on the mortgage. In Toronto especially, the land transfer tax alone can be the second largest cheque you write.
The ratios above are a lender's limit, not a recommendation. Plenty of people qualify for a payment that leaves nothing for travel, savings or a bad year. Decide what you want your monthly payment to be, then work backwards to the price.
An estimate, not advice
These figures are calculated from published government and insurer rules and are for general guidance only. They are not a mortgage approval, a quote, or legal, tax or financial advice. Lenders apply their own qualifying policies, and your own circumstances will change the result — confirm anything you plan to rely on with your mortgage professional and your real estate lawyer before you commit to a purchase or a sale. Rates, tax brackets and insurance premiums change without notice.
Statutory figures current as of . Questions about your own numbers? Ask me directly or call 416-998-1882.
