How do I know how much house I can actually afford in Calgary?
The first step is to look beyond the purchase price and consider what you're comfortable spending each month. Your income, savings, existing debt, down payment, and mortgage interest rate all affect affordability. You'll also want to budget for property taxes, utilities, insurance, maintenance, and any condo fees. I always recommend speaking with a mortgage professional before beginning your search. A pre-approval gives us a starting point, but I encourage buyers to choose a comfortable monthly payment rather than simply purchasing at the maximum amount they qualify for.

Home Affordability in Brief


  • Affordability depends on income, debt, down payment, interest rate, and ongoing costs.
  • Lenders use debt service ratios and the stress test to set your maximum.
  • Your comfortable budget may be lower than the amount you qualify for.
  • A mortgage pre-approval is the best starting point.

How Lenders Calculate What You Qualify For


Lenders look at two key ratios. Gross Debt Service (GDS) compares housing costs, including mortgage payments, property taxes, heating, and half of any condo fees, to your gross income. Total Debt Service (TDS) adds car loans, credit cards, and other debts. For insured mortgages, the typical limits are about 39% GDS and 44% TDS. You'll also need to qualify at the stress test rate, which is higher than your actual rate.


Building Your Own Budget


  • Start with your take-home pay, not your gross income
  • Include property taxes, utilities, insurance, and condo or HOA fees
  • Set aside money for maintenance and repairs
  • Keep an emergency fund after closing
  • Leave room for savings, travel, and other goals

Don't Forget Upfront Costs


Beyond your down payment, budget for closing costs such as legal fees, Land Titles registration fees, a home inspection, and moving expenses. Many lenders want to see these funds available before approving your mortgage.


The Right Starting Point


A conversation with a mortgage professional will give you a clear picture of what you can borrow. From there, we can set a search range that feels comfortable, so you can focus on homes that fit both your lifestyle and your budget.