Mortgage & Affordability Calculators

Affordability isn't just about finding a cheaper house—it's about optimizing your financial structure. Most first-time buyers focus solely on the monthly payment, but true affordability is calculated through a matrix of interest risk, opportunity cost, and liquidity.

The Stress Test as a Safety Buffer

The "Stress Test" (qualifying at 5.25% or Rate + 2%) is often viewed as a hurdle. However, savvy buyers use it as a safety metric. If you can only barely pass the stress test, you are likely over-leveraging. A truly affordable mortgage is one where you can comfortably pay at the stress test rate, not just the contract rate. This buffer protects you against the kind of rate shocks we saw in 2023-2024.

Total Cost of Ownership (TCO)

Our Mortgage Calculator includes estimates for property taxes and heating, but you must also factor in maintenance. A general rule of thumb is 1% of the property value per year for maintenance. On a $1M Toronto home, that's $10,000/year (or $833/month) that doesn't build equity. Ignoring TCO is the primary cause of "house poor" syndrome.

The Rent vs. Buy Equation

In high-interest environments, renting can sometimes be the superior wealth-building strategy. If the unrecoverable costs of buying (mortgage interest + taxes + maintenance) exceed the cost of rent, investing the difference in the S&P 500 often yields higher net worth over a 10-year horizon. Don't buy just because of social pressure—buy when the math works in your favor.