Buy vs rent tool
Can you afford to buy? Income and stress test
Before buy vs rent matters, you have to qualify. This calculator applies the stress-test rate and common debt-service ratios to estimate the price range your income supports.
GDS, TDS and the stress test
Lenders compare housing costs (GDS) and all debt payments (TDS) with gross income. For insured mortgages the commonly used limits are 39% and 44%, and the payment is tested at the greater of your rate plus two percentage points or 5.25%. Lenders set their own policies and can be stricter.
Questions people ask
Is this a pre-approval?
No. It is an estimate for planning. A lender or mortgage professional decides what you qualify for.
Why is the stress-test payment higher?
The qualifying payment uses a higher rate than your contract rate, to check you could handle a rise.
What debts are included?
Enter monthly payments on car loans, student loans, credit cards and lines of credit.
Educational estimates based on your inputs; not advice. See the methodology and assumptions.