Calculator
Loan Affordability Calculator
Lenders assess affordability with debt-service ratios. This calculator estimates your own capacity the same way, so you can see the payment you can carry before you apply.
Result
Enter your figures above and submit to see the result.
Two ratios dominate Canadian lending practice. The gross debt service ratio (GDS) is housing costs divided by gross income. The total debt service ratio (TDS) is all debt payments — housing plus cards, loans and lines — divided by gross income. For mortgages, federally regulated lenders generally apply a TDS ceiling of about 44%, and they qualify borrowers at a stress-test rate rather than the contract rate.
This calculator uses the same shape of arithmetic but keeps the inputs editable, because the ratio a particular lender will accept depends on the lender, the product and your overall profile. Use the output as a planning benchmark, not as an approval prediction.
Find out what you qualify for
One short form, passed to a licensed lender or matching partner. Free, with no obligation to accept an offer.
LoanLoon is not a lender. We do not make credit decisions, set rates, or guarantee approval. The lowest rates are only available to the most qualified applicants.
The figure above is arithmetic, not an offer. A lender's real rate, payment and total cost depend on its own underwriting, on your credit profile and on your province. loanloon.ca is a matching and comparison service — not a lender, a broker of record, or a credit counsellor. We do not make loans, set rates or make credit decisions. The lowest rates are only available to the most qualified applicants.
Frequently asked questions
What is a good debt service ratio in Canada?
Lower is better. Federally regulated mortgage lenders generally work to a total debt service ratio ceiling of about 44%, but individual lenders set their own limits and may accept more or less depending on the file.
What is a mortgage stress test?
Under the B-20 guideline, federally regulated lenders qualify borrowers at a rate higher than the contract rate to test whether they could keep paying if rates rose. It reduces the amount a borrower can qualify for.
Should I borrow the maximum I qualify for?
No. Qualifying for a payment and comfortably affording it are different tests. Leave room for rate changes, income interruption and ordinary expenses.
Is this calculator free to use?
Yes. Every calculator on loanloon.ca runs in your browser and is free. Nothing you type is sent to us or stored.
Does the result guarantee what a lender will offer me?
No. The output is an estimate based on the figures you enter. Actual rates, payments and approval are decided by the lender.
The lowest rates are only available to the most qualified applicants — what does that mean?
It means the best advertised pricing is reserved for borrowers with the strongest credit profiles, income and debt-service ratios. Most borrowers are offered something different.
Sources and further reading
- Financial Consumer Agency of Canada — Government of Canada
- Criminal Code s. 347 — criminal rate of interest — Justice Laws Website
- Payday Lending Regulations SOR/2024-114 — Canada Gazette