What You Can Afford
Uses the OSFI B-20 stress test (qualifying rate = contract + 2pp, or 5.25% floor, whichever is higher). The maximum purchase price below is what a BC lender will actually approve against your income.
You could buy up to a $744,624 home. GDS is the binding constraint at the stress-test rate.
Calculate
- Maximum mortgage you qualify for
- $594,624
- What limits you
- GDS (housing costs 39.0% / total debt 43.0% of income)
- Qualifying rate (the stress-test rate)
- 7.50%
- Monthly principal and interest at the qualifying rate (the pre-approval test)
- $4,350
- Monthly principal and interest at the contract rate (what you actually pay)
- $3,630
- Closing-cost estimate (Property Transfer Tax less first-time-buyer exemption, plus legal and adjustments)
- $7,792
- Down payment as % of max price
- 20.1%
Estimate only. Confirm with a licensed professional before relying on this number.
This is not a mortgage quote or pre-approval. Bronson Job is not a licensed mortgage broker; talk to a licensed broker for an actual approval.
Show the math8 steps
| Step | Amount |
|---|---|
| Qualifying rate = max(5.5% + 2.0pp, 5.25%) = 7.50% (osfi.b20.stress_test) | $7.50 |
| Monthly gross income (annual / 12) | $12,500.00 |
| Other housing (prop tax/12 + heating + 50% strata) | $525.00 |
| Max P+I under GDS ≤ 39% (39.0% × monthly income − other housing) | $4,350.00 |
| Max P+I under TDS ≤ 44% (44.0% × monthly income − other housing − monthly debts) | $4,475.00 |
| Binding constraint: GDS; max P+I = min(GDS, TDS) | $4,350.00 |
| Max mortgage principal at qualifying rate (7.50%, 25-year amortization) | $594,623.85 |
| Max purchase price = max mortgage + down payment | $744,623.85 |
| Total | $744,623.85 |
Computed from the BC Real Estate Codex · CC BY 4.0
Try a typical scenario
Where this fits in your buying journey
- AffordabilityWhat you can buy
- PTTTransfer tax
- Cash-to-CloseClosing day cash
- MortgageMonthly payment
How the qualifying rate works
At a 5.5% contract rate, the qualifying rate is 7.5% — contract rate plus 2 percentage points. On an $800,000 mortgage over 25 years, monthly principal and interest at the contract rate is roughly $4,890; at the qualifying rate it is closer to $5,860 — a $970-a-month difference. Pre-approval is sized so the qualifying-rate payment fits inside the lender debt-service limits (housing costs no more than 39% of income, total debt no more than 44%), not the contract-rate payment.
On the same numbers, the contract-rate math approves a $1.1M purchase; the qualifying-rate math approves $920K. The qualifying-rate figure is what the lender will actually advance. The contract-rate payment is what the buyer pays month to month.
Common questions about home affordability in BC
What is the federal mortgage stress test?
A federal rule (OSFI Guideline B-20) requiring lenders to qualify mortgage applicants at a rate higher than the contract rate. The qualifying rate is the greater of the contract rate + 2 percentage points or 5.25%, whichever is higher. The lender sizes your pre-approval against that higher rate, even though your actual monthly payment uses the contract rate.What are GDS and TDS ratios?
Gross Debt Service (GDS) is the share of your gross monthly income that housing costs can take — principal, interest, property tax, heat, and half of strata fees. The CMHC convention is GDS ≤ 39%. Total Debt Service (TDS) adds your other monthly debt obligations (car loans, student loans, credit-card minimums) and is capped at 44%. Whichever ratio is tighter at the qualifying rate is the binding constraint on your maximum mortgage.Can two incomes be combined?
Yes — lenders use combined household income for joint applications. Enter the total gross household income above. The same applies to monthly debts: enter combined household debt obligations. The GDS and TDS limits apply to the combined household figures.What happens if my down payment is below 20%?
Less than 20% down on a purchase price ≤ $1.5M triggers CMHC default insurance: a premium (2.8%–4.0% depending on the LTV tier) added to your mortgage principal, plus 7% BC PST on the premium that's due in cash at closing. Above $1.5M, CMHC insurance is unavailable and you need at least 20% down (conventional financing).Does this give me a pre-approval?
No. This calculator estimates the maximum mortgage and purchase price you qualify for under the OSFI B-20 stress test using standard CMHC GDS/TDS limits. A real pre-approval verifies your income, credit, down-payment source, and applies the specific lender's underwriting rules (which may differ slightly — credit unions and private lenders use different rates and ratios). Talk to a licensed mortgage broker for an actual approval.What does the closing-cost estimate include?
It covers the largest line items — Property Transfer Tax net of the first-time-buyer exemption, plus typical legal/notary fees, title insurance, and prorated adjustments. It deliberately leaves out a couple of deal-specific costs, most notably the 7% PST on the CMHC premium that applies when you put down less than 20%, which can add $1,000–$2,000+. For the full line-by-line number on a specific purchase — including that insured-deal PST — use the cash-to-close calculator.
Related
Verified sources (1)· re-verified 2026-05-08Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- OSFIretrieved 2026-05-08Guideline B-20: Residential Mortgage Underwriting Practices and Procedureshttps://www.osfi-bsif.gc.ca/en/guidance/guidance-library/final-revised-guideline-b-20-residential-mortgage-underwriting-practices-procedures
osfi.b20.stress_test · v1View in Codex →Verified sources (2)· re-verified 2026-05-08Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CMHCretrieved 2026-05-08Mortgage Loan Insurance Homeownership Programshttps://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/cmhc-mortgage-loan-insurance-homeownership-programs
- Government of Canadaretrieved 2026-05-08· published 2024-09-16Government Announces Boldest Mortgage Reforms in Decadeshttps://www.canada.ca/en/department-finance/news/2024/09/government-announces-boldest-mortgage-reforms-in-decades-to-unlock-homeownership-for-more-canadians.html
cmhc.insurance_cap · v2View in Codex →Verified sources (2)· re-verified 2026-05-19Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- BC Governmentretrieved 2026-05-19Property Transfer Taxhttps://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
- BC Governmentretrieved 2026-05-08Property Transfer Tax Act, RSBC 1996, c. 378https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/96378_01
bc.ptt.brackets · v1View in Codex →Verified sources (1)· re-verified 2026-05-19Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- BC Governmentretrieved 2026-05-19First Time Home Buyers' Program — exemption amounthttps://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers/current-amount
bc.ptt.fthb_exemption · v2View in Codex →