The shortest answer to that question is: it depends on a number of factors. Most important factors are your gross household income, your down payment and the mortgage interest rate, your ammortization period. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.

To help you estimate the maximum mortgage you can afford CMHC has developed the following easy to use mortgage tool. Just enter the information required below and it will calculate the maximum house price you can afford, the maximum mortgage amount you can borrow, and your monthly mortgage payments of principal and interest.

These calculation are based on two simple rules that lenders use to determine how much of a mortgage you can afford. The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees.

Secondly, your entire monthly debt load should not be any more than 40% of your gross monthly income. This includes housing costs, and other debts such as car payments, personal loans, and credit card payments.

The following calculator has been provided to approximately calculate your monthly mortgage payments including principal and interest. The confidential information you enter in this calculator is not recorded or shared.

The accuracy of this calculator is not guaranteed. You should always obtain financial advice from qualified resource professionals.

If you're considering a home, for further assistance please contact Helena Bowen