How much can I actually afford?
Not what the payment looks like — what a lender will approve, once the stress test is applied.
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The stress test is usually what decides it
A lender must qualify you at the greater of your rate plus two points or5.25%. At 4.79% that means being assessed as though the mortgage were 6.79%. It does not change what you pay. It changes what you are allowed to borrow.
| Household income | Down payment | Maximum price | Payment at 4.79% |
|---|---|---|---|
| $120,000 | $60,000 | $537,324 | $2,804/mo |
| $150,000 | $100,000 | $714,879 | $3,612/mo |
| $200,000 | $200,000 | $1,046,599 | $4,958/mo |
No other debt, $5,000 of property tax, 25-year amortization. A $ 700 monthly car payment would take roughly ten thousand dollars off each of those prices.
Two rules that surprise people
The minimum down payment is tiered. Five per cent on the first $500,000, ten per cent on everything above it. At$1,500,000 and above, insurance is not available at all and you need twenty per cent — which is why buying power can stop dead just below that price.
Other debt costs more than it looks. A monthly payment counts against your Total Debt Service ratio at full weight, so clearing a car loan before applying can be worth more to your approval than saving the same amount toward the down payment.
What this does not include
- Closing costs. They come out of your cash, not your mortgage — work them out on the closing costs calculator and subtract them from your down payment before using it here.
- Your credit score and employment history. Both can stop an approval that the ratios allow. This is arithmetic, not an underwriting decision.
- Lender-specific rules. Some are stricter than the published ratios, particularly on self-employment or rental income.
- Amortizations over 25 years. Thirty is available to first-time buyers and on new builds; change the field if it applies to you.
Rates verified 1 August 2026. An estimate for planning, not advice — your lawyer's statement of adjustments is the number that settles it, and Elixir Real Estate is not a law firm, a lender or a tax adviser.