Disclaimer

Affordit publishes estimates for planning and general information. It does not offer financial advice. Each figure is a starting point for your own decisions about renting, buying, borrowing and saving.

What each result means

The rent budget applies a common shelter cost benchmark to your income. Whether rent at that level fits your household also depends on utilities, transport, childcare, food, insurance, debt, taxes, and other expenses. Landlords set requirements of their own, such as an income threshold or a credit check.

The home price is the highest price that passes the debt service test under Affordit's assumptions, with the minimum down payment and no other debt.

The savings target is a suggested share of gross income. What a household can save depends on housing, debt, taxes, and other expenses.

Assumptions are Affordit's choices

Some figures Affordit uses are Canadian qualification rules. The rest are defaults Affordit chose, so an estimate can start before every detail is known: a mortgage rate, an amortization, a property tax rate and a heating cost. Property tax varies by municipality and heating varies by home, so your own figures will differ.

Every figure is listed, with a line on where it comes from. Read the methodology

Rules and rates change

Mortgage qualification rules, insurance premiums, down payment thresholds and interest rates all change over time. Affordit updates its figures as rules change, and a change may take time to appear here. Every figure is offered as it is, for planning.

Before acting on any of it, check your situation with a mortgage professional, a lender, or a qualified financial advisor.