Find out exactly how much home you qualify for — Canada (GDS/TDS + B-20) or USA (28/36 rule).
GDS/TDS · B-20 stress test · 28/36 DTI rule · Canada & USA
Qualification Details
Income
Mortgage Terms
Monthly Housing Costs
Monthly Debt Obligations
Qualifies — 28/36 Rule Pass
Maximum Home Budget
$358,126
Max Mortgage
$278,126
Est. Monthly P&I
$1,666.67
Front-End
28.0%
limit 28%
Back-End
28.0%
limit 36%
Understand exactly what drives your qualification.
Borrowing Capacity
Qualification Snapshot
Maximum Home Price
$358,126
Qualifying Ratios at Maximum Budget
Front-end & back-end ratios at your estimated maximum purchase price (28/36 rule)
Front-End Ratio
Includes: Principal & Interest · Property Tax · Heating
Back-End Ratio
Includes: All front-end components · Car / Vehicle Payments · Credit Card Minimums · Other Monthly Debts
Ratios are calculated at your maximum qualifying price. At a lower purchase price, your ratios improve proportionally.
FinCalc Smart AI Qualifier Analysis
Qualification Verdict
Qualifies
28/36 Rule — both ratios pass
Good news — you qualify for this purchase.
Your income and debt profile meet 28/36 rule front-end and back-end thresholds. You have borrowing room at your current figures.
Top Lever
$50,100
potential extra qualifying budget
Add $10,000/yr household income
Additional qualifying income can expand borrowing capacity by increasing available front-end/back-end room.
Estimate based on current inputs — actual lender results may vary.
What's Limiting You
Income & housing are balanced
No single factor is constraining you. Both front-end (28.0%) and back-end (28.0%) clear lender limits.
Qualifying Power
+$16,688 per $100.00/mo debt cut
No current debts — full qualifying power applied to your income.
Rate Sensitivity
+1% rate typically ≈ 8–10% less qualifying power
Illustrative industry range at 5.25% — each 1% rate increase meaningfully reduces qualifying power. A fixed rate locks in your qualification basis.
Income & Capacity Breakdown
Monthly Income
$7,916.67
Monthly Debts
None
Max P&I Capacity
$1,666.67
Back-end Headroom
8.0pp left
Disclaimer: This analysis is for illustrative purposes only and does not constitute financial, tax, or mortgage advice. Individual results will vary based on lender terms, credit profile, and market conditions. Consult a licensed mortgage professional before making financial decisions.
Canadian lenders use two debt-service ratios to qualify borrowers. The stress test requires qualifying at the higher of your contract rate + 2% or 5.25% — this calculator applies it automatically.
This calculator uses a 39% GDS and 44% TDS planning limit for Canadian scenarios. For insured mortgages (<20% down), these match CMHC’s published qualification ratios. For uninsured mortgages (20%+ down), actual lender underwriting may differ, so the same 39%/44% is applied here as a conservative planning estimate rather than a guaranteed limit. Semi-annual compounding applies per the Canadian Interest Act.
US lenders evaluate two ratios using the contract rate directly — there is no mandatory stress test. Monthly compounding applies.
Where P&I is the principal and interest payment at the contract rate with monthly compounding. Per HUD Handbook 4000.1, FHA loans allow up to 31% / 43% (higher with compensating factors); per VA guidance, VA loans have no hard DTI ceiling, but ratios above 41% back-end require stronger residual income.
To find the maximum mortgage, the calculator first determines the largest monthly P&I payment your income and debts allow, then reverses the amortization formula to solve for principal:
In Canada, the stress-test rate is used to compute Max P&I (conservative qualification), then the actual contract rate is applied in the final formula to determine the mortgage principal you can carry. This mirrors what federally regulated lenders do in practice.
| Feature | Canada | USA |
|---|---|---|
| Housing ratio | GDS ≤ 39% | Front-end ≤ 28% |
| Total debt ratio | TDS ≤ 44% | Back-end ≤ 36% |
| Stress test | Yes — rate + 2% or 5.25% | No mandatory test |
| Compounding | Semi-annual (Interest Act) | Monthly |
| Mortgage insurance | CMHC required <20% down | PMI required <20% down |
This calculator is for illustrative and informational purposes only. Results are estimates and may not reflect actual mortgage terms. Individual results will vary based on lender terms, credit profile, amortization period, and prevailing market conditions. This does not constitute financial, tax, or legal advice. Consult a licensed mortgage professional or qualified financial advisor before making any financial decisions.