Mortgage Affordability (Canada)

Estimate based on GDS/TDS limits and interest rate.

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Inputs

Annual household income (CAD) Monthly debts (CAD) Interest rate (%) Amortization (years)

Quick explainer 🎥

Video: How Canadian mortgage affordability (GDS/TDS) is calculated.

const income = $("#income"); const debts = $("#debts"); const rate = $("#rate"); const years = $("#years"); const payment = $("#payment"); const mortgage = $("#mortgage"); const note = $("#note"); const fmt = v => new Intl.NumberFormat("en-CA", { style: "currency", currency: "CAD", maximumFractionDigits: 0 }).format(v || 0); function mortgageFromPayment(pmt, r, n){ if (r <= 0) return pmt * n; return pmt * (1 - Math.pow(1 + r, -n)) / r; } function run(){ const inc = Math.max(0, Number(income.value || 0)); const debt = Math.max(0, Number(debts.value || 0)); const rateVal = Math.max(0, Number(rate.value || 0)) / 100; const yrs = Math.max(5, Number(years.value || 25)); if (!inc || !rateVal){ payment.textContent = "-"; mortgage.textContent = "-"; note.textContent = "Enter income and rate."; return; } const monthlyIncome = inc / 12; const gdsLimit = monthlyIncome * 0.32; const tdsLimit = monthlyIncome * 0.40 - debt; const maxPmt = Math.max(0, Math.min(gdsLimit, tdsLimit)); const n = yrs * 12; const monthlyRate = rateVal / 12; const loan = mortgageFromPayment(maxPmt, monthlyRate, n); payment.textContent = fmt(maxPmt); mortgage.textContent = fmt(loan); note.textContent = "Estimate only; excludes property taxes, heating, condo fees."; } [income, debts, rate, years].forEach(el => el.addEventListener("input", debounce(run, 120))); $("#y").textContent = new Date().getFullYear();