Skip to content
Independent and free · no "instant approval": a pre-approval is a lender's conditional estimate · rules checked Nov 2, 2026Who runs this site
MortgagePreApprovals.caReady, approved, kept until closingAsk Mitey
Tool

How much will a lender pre-approve you for?

Short answer

A household earning $120,000 with $60,000 down and $400 of monthly debts tops out near $605,100 as a first-time buyer over 30 years, or $575,700 over 25. The cap comes from the stress test at 6.12% and CMHC's insured debt ratios.

Figures as of 2026-11-03.
Facts checked How we check facts

Maximum purchase price at pre-approval

The most a lender's stress test and down-payment rules would allow, and what's limiting you.

Default: Bank of Canada average for new insured 5-year+ fixed, 4.12% (2026-08).
Using 30 years: first-time buyers may take 30 on an insured mortgage.
Using 0.750%.
Maximum purchase price$605,100limited by GDS (housing costs ÷ income); 30-year amortization ($575,700 over 25 years)
Mortgage (with any premium)
$567,994
Qualifying rate
6.12%
GDS / TDS at the limit
39.0% / 43.0%
Cash to close
$69,109
Down payment + closing costs + premium tax
Payment at your rate
$2,740
A maximum, not a targetLenders approve up to this; whether it's comfortable is your call. Leave room for the rate to move before your hold ends. Rate-hold countdown.

Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.

Maximum price about $605,100; limited by GDS (housing costs ÷ income).

Maximum price by rate and other debts
Rate ↓ / Debts →$0$250$500$750$1,000
3.12%$653K$653K$653K$614K$578K
3.62%$632K$632K$632K$598K$560K
4.12%$605K$605K$605K$573K$536K
4.62%$584K$584K$584K$550K$515K
5.12%$561K$561K$561K$528K$494K
Rows: your rate. Columns: other monthly debt payments.
Assumptions & sources

Assumptions

  • Same rules as the readiness check: OSFI/Finance qualifying rate, CMHC GDS 39% / TDS 44%, federal minimum down payment and CMHC premiums.
  • For a full affordability plan by city, see MortgageAffordabilityCalculator.ca.

Sources

  1. OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
  2. Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
  3. CMHC — Calculating GDS / TDS. Checked .
  4. CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
  5. CMHC — Mortgage loan insurance cost (premium table). Checked .

How does this calculator work?

The calculator searches for the highest price that passes every test at once and tells you which one binds. Leave amortization at 0 and it uses the longest the rules allow: 30 years for first-time buyers and new builds on an insured mortgage, otherwise 25. It adds the CMHC premium under 20% down, land transfer tax and closing-cost estimates to show cash to close. The 39% and 44% limits are CMHC's for insured mortgages; uninsured lenders set their own. For comfort budgets and city taxes, see MortgageAffordabilityCalculator.ca; to check readiness item by item, use the readiness check.

A first-time buyer in Ontario
A first-time buyer in Ontario: inputs, steps and result
Household income$120,000
Down payment$60,000
Other debt payments$400/month
Rate4.12%Bank of Canada average for new insured 5-year+ fixed mortgages, 2026-08
Amortization30 yearsfirst-time buyer, insured (since Dec 15, 2024)
Qualifying rate6.12%higher of the rate + 2 or 5.25%
Mortgage incl. CMHC premium$567,9944.20% premium on $545,100
GDS / TDS at the limit39.0% / 43.0%CMHC insured limits 39% / 44%
Same household over 25 years$575,700
Maximum purchase price (30 years)$605,100

The 30-year option adds about $29,400 of buying power for this household, at the cost of more interest over the life of the loan.

Open this example in the calculator →Computed November 2, 2026.

Mitey the yeti stands at a planning board, pointing at a price ceiling line.
Mitey marks the ceiling, then the 25-year line just under it, so the first-time buyer sees what the extra five years buy.

Frequently asked questions

How much will I be pre-approved for?

Roughly the highest price where your payments at the qualifying rate fit within 39% (housing) and 44% (all debts) of gross income, CMHC's insured limits, with the minimum down payment. Lenders also look at credit and documents.

Should first-time buyers use 30 years?

It raises the maximum and lowers the payment, but costs more interest. You can qualify at 30 and still pay as if it were 25.

Primary sources

  1. OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
  2. Department of Finance Canada — Statement on the insured mortgage stress test (effective December 12, 2023). Checked .
  3. CMHC — Calculating GDS / TDS. Checked .
  4. CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
  5. CMHC — Mortgage loan insurance cost (premium table). Checked .
  6. CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
  7. Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
Readiness checkEvery test, with fixes.Open →What could break itKeep the maximum until closing.Open →Stress test calculatorOn MortgageStressTestCalculator.ca.Open →