Can I actually afford a mortgage right now? Honest answer.

Question

Accepted Answer

Stress-test rule says you qualify at the higher of (your contract rate + 2%) or 5.25%. On a $100K household income with 20% down, that gets you to about $480K–$520K in most Canadian markets. The qualifying number is what the bank will lend; the affordable number is usually 25–30% lower because property tax, condo fees, insurance, and maintenance pile on after closing.

What your bank didn’t say: Banks pre-approve to the qualifying ceiling because larger loans earn more. The number that matters is whether your total housing cost (mortgage + tax + maintenance + insurance) stays under 35% of gross household income. Most first-time buyers who stretched to the pre-approval ceiling regretted it inside 18 months — interest-rate shocks, job changes, and life events do not respect amortization tables.