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Canadian Mortgage Required Income Calculator

Calculate the required qualifying income to buy a home in Canada based on the OSFI stress test and standard GDS/TDS ratios.

Property & Mortgage Details

% (CMHC Required)

CMHC limits amortization to 25 years.

Monthly Carrying Costs

Only 50% used for qualifying.

Car loans, credit cards, etc.

Required Qualifying Income

Estimated annual income needed to pass the OSFI stress test.

Qualifying Details

Qualifying Rate
Mortgage Required
+ CMHC Premium
Total Mortgage
Qualifying Payment
GDS Limit (39%)
TDS Limit (44%)

How This Is Calculated (Canadian Rules)

OSFI Stress Test

In Canada, federally regulated lenders must qualify you using the "stress test" rate. This is the higher of your actual contract rate + 2%, or 5.25%.

Semi-Annual Compounding

Canadian mortgages (unlike US mortgages) compound interest semi-annually, not monthly. This calculator uses the correct Canadian formula to determine your qualifying payment.

GDS and TDS Ratios

  • GDS (Gross Debt Service): Maximum 39% of your gross income can go towards housing costs (Mortgage + Taxes + Heating + 50% Condo Fees).
  • TDS (Total Debt Service): Maximum 44% of your gross income can go towards housing costs PLUS all other debt payments (car loans, credit cards, etc.).

The required income is the higher of the income needed to satisfy the GDS limit and the TDS limit.

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