Mortgage · Borrowing capacity · September 14, 2026
The two ratios, the tested rate, three examples calculated at today's rate, and the five levers that raise the amount.
Mortgage borrowing capacity is calculated with two ratios and one rate: the payment, taxes, heating and half the condo fees must not exceed 39% of gross income (GDS), the same amount plus other debts 44% (TDS), CMHC guidelines for an insured loan, and the payment is calculated at the tested rate, the higher of 5.25% or the rate plus 2 points, that is 6.09% with the best insured 5-year on the market at 4.09% on September 11, 2026. Examples calculated over 25 years, with $350 of taxes and $150 of heating a month and no other debt: about $325,498 of loan at $80,000 of income, $426,247 at $100,000, $678,120 at $150,000, down payment on top. Paying off a $500-a-month debt frees about $77,499 of capacity. These are orders of magnitude; the pre-authorization with your documents gives the exact figure.
Two ratios and one rate. The gross debt service (GDS) ratio: the mortgage payment plus municipal and school taxes, heating and half the condo fees must not exceed 39% of your gross annual income (CMHC guideline for an insured loan). The total debt service (TDS) ratio: the same amount plus your other debts (car, cards, student loans) must not exceed 44%. And the tested rate: the payment is calculated at the higher of 5.25% or your rate plus 2 points; with the best insured 5-year fixed on the market at 4.09% (Ratehub survey of September 11, 2026), the test is done at 6.09%.
Assumptions: municipal and school taxes $350 a month, heating $150, no other debt, payment calculated the Canadian way (semi-annual compounding). These are orders of magnitude, not a pre-authorization.
| Gross household income | Maximum mortgage payment (GDS 39%) | Approximate maximum loan |
|---|---|---|
| $80,000 | $2,100 a month | $325,498 |
| $100,000 | $2,750 a month | $426,247 |
| $150,000 | $4,375 a month | $678,120 |
Add the down payment to get the purchase price: with $100,000 of income and a $40,000 down payment, the target price is around $466,247. A $500-a-month car loan removes about $77,499 of capacity at the tested rate. Our mortgage calculator reruns the calculation on your figures, CMHC premium and test included.
It says what the lender accepts, not what you can live with: the real taxes of the target city (our welcome tax calculator for the entry), maintenance, transport, childcare. Many households voluntarily stop at 30% or 32% of gross income. The pre-approval confirms the figure with your documents.
About $426,247 of loan at the 6.09% tested rate (best insured 5-year at 4.09% plus 2 points), with $350 of taxes and $150 of heating a month and no other debt, under the 39% GDS ratio; add your down payment for the purchase price. It is an order of magnitude: the pre-authorization with your documents gives the exact figure.
For an insured loan, the CMHC guidelines: 39% of gross income for housing (payment, taxes, heating, half the condo fees) and 44% for housing plus all debts. Some lenders are stricter on a conventional loan; the calculation is always done at the tested rate.
Yes: the payment is calculated at the higher of 5.25% or your contract rate plus 2 points, for insured loans as well as conventional loans from federally regulated lenders. With a 4.09% rate, the test is done at 6.09%.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts more than 220 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.