Question 1

Why does this calculator show a price range instead of one number?

Accepted Answer

Because Canadian lenders can legitimately qualify the same borrower under different methods. An owner-occupied two-unit property may use up to 100% of the secondary-suite rent under CMHC's gross-rental-income approach, while a conservative method counts only 50% with taxes and heat included. The range shows the spread between these legitimate calculations — one borrower earning $100,000 can qualify near $475,000 under one method and near $590,000 under another.

Question 2

What is the difference between the income-qualified maximum and the down-payment maximum?

Accepted Answer

The income-qualified maximum is what your income, debts and the stress test could service, assuming the minimum down payment. The down-payment maximum is the highest price your available cash can cover under Canada's minimum-down rules (5% of the first $500,000, 10% above, 20% at $1.5M+). Your real ceiling is the lower of the two — which is why someone can service a large mortgage yet still be limited by savings.

Question 3

How is rental income from a basement suite treated?

Accepted Answer

It depends on the property and the method. For an owner-occupied two-unit home, CMHC identifies an approach using up to 100% of gross suite rent; many lenders instead add 50% of gross rent to income. For 3-4 unit owner-occupied properties, either 50% of gross rent or a net-rental calculation applies. The suite generally must be legal or conforming, with rent supported by a lease or appraisal.

Question 4

Does paying off a car loan really increase how much I qualify for?

Accepted Answer

Yes — significantly. Debt payments consume TDS room at your qualifying rate, so a $500/month car payment can reduce your maximum price by roughly $75,000–$90,000 depending on rates. The calculator lets you mark debts as 'paid before closing' and shows the exact difference.

Question 5

How much employment history do lenders want to see?

Accepted Answer

Typically two years in the same job or field. Salaried employees past probation in a new permanent role are usually fine with a job letter and pay stubs. Variable income (bonus, overtime, commission) is averaged over two years, and self-employed borrowers qualify on a two-year average of their Notices of Assessment — not current-year revenue.

Detailed Mortgage Qualification Calculator

Your buying situation

Detailed Mortgage Qualification Calculator

Your buying situation