Do you qualify for a mortgage?
Before you fall in love with a listing, find out what you can actually borrow. This tool runs the same ratio math US and Canadian lenders use - including the Canadian stress test.
Qualification comes down to a simple idea: lenders cap how much of your income can go to housing and to total debt. Get those numbers first and you shop in the right price range, make stronger offers, and avoid heartbreak at the pre-approval stage.
Mortgage qualification calculator
How qualification actually works
The two ratios
Every lender starts with two caps. The housing ratio limits your mortgage payment plus property tax, heating and insurance to a share of your gross income (about 28% in the US, 39% GDS in Canada). The total-debt ratio adds in car payments, credit cards and loans, capped higher (about 43% in the US, 44% TDS in Canada). Whichever cap is tighter for you is the one that sets your maximum - which is why paying down a car loan can raise your mortgage approval more than a raise would.
The Canadian stress test
In Canada there is an extra hurdle: you must qualify as if your rate were the greater of your contract rate plus 2% or 5.25%. So even if you are offered 4.8%, you have to prove you could carry payments near 6.8%. It lowers the amount you qualify for, but it is also a built-in safety margin against rising rates - exactly the kind of cushion that matters when inflation is sticky.
What lenders check beyond the ratios
- Credit - score and history; stronger credit means better rates and smoother approval.
- Income stability - length and type of employment; self-employed income is averaged and scrutinised.
- Down payment and its source - saved funds vs gift vs borrowed; below 20% down triggers mortgage insurance.
- The property - the lender appraises it; the loan is limited by value as well as by you.
How to qualify for more
The fastest lever is almost always reducing monthly debt, because it directly frees up your total-debt ratio. After that: increase or better-document income, add a qualified co-borrower, raise your down payment, improve your credit score for a lower rate, or extend the amortization (which lowers the payment but raises lifetime interest). Run a few scenarios in the tool above to see which change moves your number the most.
Compare mortgage rates
Shopping your rate can save tens of thousands over the life of the loan. These tools show offers from many lenders at once.
Ratehub.ca (Canada)Compare 50+ Canadian lenders in two minutes. Free.CompareLendingTree (US)
Compare offers from multiple US lenders.CompareBankrate (US)
Daily-updated US rates and lender reviews.View
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Get pre-approved before you shop
This calculator gives you a realistic target. The next step is a real pre-approval from a lender or broker, which verifies your income and credit and often holds a rate for 90-120 days. Walking in pre-approved tells sellers you are serious and keeps you from shopping above your limit.
Frequently asked questions
How do lenders decide how much mortgage I qualify for?
They cap your housing and total-debt payments as a share of gross income. In the US that is the front-end ratio (housing, ~28%) and back-end ratio (all debts, up to ~43%). In Canada it is GDS (housing, max 39%) and TDS (total debt, max 44%), and you must also pass the stress test.
What is the Canadian mortgage stress test?
To qualify in Canada you must show you could afford payments at the greater of your contract rate plus 2% or the 5.25% benchmark - not just your actual rate. It exists so borrowers can still pay if rates rise. It meaningfully lowers the amount you qualify for.
What credit score do I need to qualify?
There is no single cutoff, but stronger credit unlocks better rates and easier approval. US conventional loans often want ~620+, with the best pricing well above 700; some government programs go lower. In Canada, lenders look for healthy credit plus stable, provable income.
How much down payment do I need to qualify?
US conventional loans can start near 3% (with PMI under 20%); government-backed options go lower. Canada requires at least 5% on the first $500,000, with mortgage default insurance below 20% down. A larger down payment raises the price you qualify for and can remove insurance.
How can I qualify for a bigger mortgage?
Pay down monthly debt (it frees up your ratios fast), increase or better-document your income, add a qualified co-borrower, raise your down payment, improve your credit, or choose a longer amortization. Lowering debt usually moves the number the most.