How Much Mortgage Can I Actually Afford?
By Tiffany Quaye · Last reviewed 2026-08-01
The short answer
Lenders generally want housing costs under about 39% of gross income (GDS) and total debt payments under about 44% (TDS), calculated at the stress-test rate. Your comfortable number is usually well below your maximum approval, because ratios ignore childcare, savings goals and how you actually live.
What lenders count
- Mortgage principal and interest at the qualifying rate.
- Property taxes and heating costs.
- 50% of condo fees, where applicable.
- All other monthly debt payments, including 3% of credit card balances in most cases.
What lenders don't count
Childcare. Groceries. Insurance. Car maintenance. Retirement savings. Travel. Everything that makes a house a life. This is why the maximum approval and the sustainable number are usually different, and why the affordability calculator on this site shows both.
Questions people ask
What's the difference between GDS and TDS?
GDS counts only housing costs against your income. TDS adds all your other debt payments. Lenders test both, and the lower resulting amount governs.
Should I borrow my maximum?
Rarely. Most people who are still comfortable five years later borrowed meaningfully less than their approval and left room for rate changes.
Want this applied to your actual numbers?
Articles are general. Your file isn't. Bring your balances and your renewal date and I'll tell you what I'd do in your position.
Related reading
Not sure which option fits your situation?
Bring your numbers — mortgage balance, balances you're carrying, and what's stressing you out. I'll walk you through what's realistic, including when doing nothing is the better call.