Wondering how much house you can afford in Ontario? One of the first—and most important—steps in the home buying process is getting pre-approved for a mortgage. Pre-approval gives you a clear idea of your budget, helps you understand your financial standing, and makes you a more attractive buyer.
In this guide, we’ll walk you through how affordability is calculated, what’s involved in the mortgage pre-approval process, and how we can help you shop with confidence.
🏡 What Determines Mortgage Affordability in Canada?
Before you start house hunting, it’s essential to know your maximum home purchase price. Mortgage affordability is based on:
Your gross monthly income
Your monthly debts (credit cards, auto loans, lines of credit, etc.)
The size of your down payment
Estimated property taxes and heating costs
We use two key calculations to help determine your affordability:
Gross Debt Service (GDS): Compares your monthly housing costs (mortgage, property taxes, heating) to your gross income.
Total Debt Service (TDS): Compares all of your monthly obligations—including housing and other debts—to your gross income.
💡 Example: If you earn $6,000/month and expect housing costs around $2,000, plus a $300 car payment, we’ll assess whether those numbers fit within the recommended lending guidelines.
📋 Step-by-Step: The Mortgage Pre-Approval Process
The affordability assessment begins with filling out a mortgage application, where we collect information about:
Income and employment
Assets and savings
Liabilities (like loans and credit cards)
Address and residency history
Once submitted, the application generates a customized document checklist, making it easy to gather exactly what’s needed.
When we receive your documents, we review everything and then issue an Affordability Letter, which outlines:
Your maximum mortgage approval amount
Your verified down payment
An estimate of annual property taxes
With this letter in hand, you can shop confidently, knowing exactly what price range you can afford.
✅ Benefits of Getting Pre-Approved for a Mortgage
Getting pre-approved for a mortgage in Ontario offers several key advantages:
Know your true price range before you shop
Save time by avoiding homes outside your budget
Be ready to act quickly when you find the right property
Strengthen your offer with proof of financing
Real estate agents and sellers take you more seriously when you're pre-approved—it shows you’re a serious and prepared buyer.
🤝 Why Work With Us for Your Mortgage Pre-Approval
When you work with us, you’re not just getting a number—you’re getting personalized support from start to finish. As mortgage agents, we have access to multiple lenders across Ontario, allowing us to find options that best fit your financial situation.
Whether you’re:
Buying your first home
Newly self-employed
Repairing your credit
Unsure how to navigate the process —we’re here to help.
We’ll take the time to explain every step, answer your questions in plain language, and ensure you feel confident about your decisions.
📝 Next Steps to Get Pre-Approved for a Mortgage in Ontario
Complete your mortgage application
Submit the requested documents
Receive your Affordability Letter
Start your home search with confidence
💬 Ready to Find Out How Much House You Can Afford?
We’re here to help you every step of the way.
👉 Get started with your mortgage pre-approval today and take the first step toward owning your dream home in Ontario.