How affordability is calculated in Canada
Two debt-service ratios set the ceiling. The Gross Debt Service ratio caps your housing costs — mortgage, property tax, heat, and half your condo fees — at roughly 39% of gross income. The Total Debt Service ratio adds every other monthly debt and caps the total near 44%. Whichever limit you hit first is the one that sets your maximum, so paying down a car loan or a credit-card balance can raise the price you qualify for.
Why the stress test lowers the number
Federally regulated lenders do not qualify you at your contract rate. They use the greater of your rate plus two percentage points or a 5.25% floor. That higher qualifying rate shrinks the mortgage your payment can support, which is the single biggest reason the affordable price is lower than buyers expect.
Plan for the whole cost of owning
The mortgage is one line in the cost of a home. Land transfer tax, closing costs, property tax, insurance, and maintenance all add up. Keeping a durable record of your home, its appliances, warranties, and maintenance history is the cheapest insurance a homeowner has. That is what Habyn property records are built to keep, free for homeowners on the Home plan.