Know what you can actually afford.
Get a first-pass estimate of what you can afford before you start touring homes — based on income, debt, down payment, rate and amortization. A real pre-approval from a lender will confirm the exact number.
Estimate what you can afford
Enter your household income, monthly debts, down payment, rate and amortization.
What actually decides your approval.
Lenders look at two ratios. GDS (Gross Debt Service) compares your proposed housing costs — mortgage payment, property tax, heating — against your gross income, and is generally capped around 39%. TDS (Total Debt Service) adds in your other debts — car loans, credit cards, lines of credit — and is generally capped around 44%. Whichever ratio is more restrictive sets your real ceiling.
The stress test requires you to qualify at a rate higher than your actual contract rate — so your true approval amount is often lower than a simple payment calculation at today’s rate would suggest. This calculator is a simplified first pass; a lender’s full underwriting will apply the stress test and your specific debt and credit profile.
Why pre-approval matters: a real pre-approval, not just this estimate, tells you your actual budget, locks a rate for a window while you shop, and makes any offer you write far more credible to a seller.
These figures are estimates for illustration only and do not reflect the mortgage stress test or a lender’s full underwriting. Actual approval amounts depend on your credit, employment, and the lender’s specific policies — always confirm with a mortgage professional.
- GDS compares housing costs to income, typically capped near 39%
- TDS adds in other debts, typically capped near 44% — whichever is lower sets your ceiling
- The mortgage stress test qualifies you at a higher rate than your contract rate
- A real pre-approval locks a rate and confirms your true budget before you shop
Turn this estimate into a real pre-approval.
Send your details and get matched with a mortgage specialist from Amir’s network of 50+ lenders — confidential, no-obligation, and free.