Planiprêt — Mortgage Qualification & Analysis

TDS formula: (Mortgage pmt + Taxes + Heating + Other debts) ÷ Gross monthly income ≤ 44% | GDS: (Mortgage pmt + Taxes + Heating) ÷ Gross monthly income ≤ 39% | Qualification rate: the higher of the posted 5-year rate (5.25%) or contract rate + 2% (stress test)

Client profile

Annual gross income — applicant ($)

Annual gross income — co-applicant ($)

Credit score range

Monthly property costs

Municipal + school taxes / month ($)

Heating / month ($)

Condo fees / month ($)

Other monthly debts

Car payments, credit cards, loans ($)

Down payment & term

Down payment ($)

Amortization

Maximum purchasing capacity

Max mortgage (stress test)

—

Max purchase price

—

Max monthly budget (TDS)

—

Max monthly budget (GDS)

—

Qualifying (stress test) rate used —

TDS ratio (mortgage+tax+heat+debts ÷ income)—

GDS ratio (mortgage+tax+heat ÷ income)—

CMHC mortgage insurance

Down pmt %	Type	Premium ≤25yr	Premium 30yr *
5%	Insured	4.00%	4.20%
10%	Insured	3.10%	3.30%
15%	Insured	2.80%	3.00%
20%+	Conventional	N/A	N/A

* 30yr +0.20% surcharge applies only for first-time buyers or new construction

Down payment %—

Mortgage type—

CMHC premium rate—

CMHC premium ($)—

Total mortgage with premium—

Estimated actual payment (ask your broker for rate)

Actual interest rate (%)

Est. monthly payment—

Est. bi-weekly accelerated—

Monthly payment formula: P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1] where P = loan principal, r = monthly rate (annual rate ÷ 12), n = total months | Bi-weekly accelerated = monthly ÷ 2 | Weekly accelerated = monthly ÷ 4

Welcome tax (Québec): 0.5% on first $52,800 + 1.0% on $52,801–$264,000 + 1.5% on balance above $264,000 | GDS heating = use $100–$150/mo if unknown

Property details

Purchase price ($)

Annual municipal + school tax ($)

Condo fees — monthly ($)

Home insurance — annual ($)

Electricity + heating — annual ($)

One-time startup costs

Home inspection ($)

Notary / legal fees ($)

Adjustments ($)

Insurance premium tax ($)

Annual carrying costs

Cost item	Annual	Monthly
Municipal + school tax	—	—
Condo fees	—	—
Home insurance	—	—
Electricity + heating	—	—
Total	—	—

Welcome tax (droit de mutation — Québec)

Bracket	Rate	Tax amount
First $52,800	0.5%	—
$52,801 – $264,000	1.0%	—
Above $264,000	1.5%	—
Total welcome tax		—

Total startup costs summary

Item	Amount
Home inspection	—
Notary / legal fees	—
Welcome tax	—
Other adjustments	—
Total startup costs	—

Monthly payment: P×r(1+r)ⁿ÷[(1+r)ⁿ−1] | Annual interest: opening balance × (annual rate ÷ 12) × 12 | Annual principal: annual payment − annual interest | Total cost = monthly pmt × 12 × amortization years

Loan parameters

Loan principal ($)

Annual interest rate (%)

Amortization period

Monthly payment

—

Bi-weekly accelerated

—

Total interest paid

—

Total cost of loan

—

Year-by-year amortization schedule (first 10 years)

Year	Opening balance	Annual payment	Principal paid	Interest paid	Interest %	Closing balance

Core qualification formulas

Step-by-step qualification

Find max monthly budget (TDS)
Annual income × TDS% ÷ 12
$80,000 × 44% ÷ 12 = $2,933/mo total available

Find max monthly budget (GDS)
Annual income × GDS% ÷ 12
$80,000 × 39% ÷ 12 = $2,600/mo for housing only

Available for mortgage payment
min(TDS budget, GDS budget) − taxes − heating − debts
$2,600 − $300 − $125 − $193 = $1,982/mo

Find the qualifying (stress test) rate
The higher of the posted 5-year rate (5.25%) or contract rate + 2%
Contract rate 4.04% + 2% = 6.04% → higher than 5.25%, so 6.04% is used

Max mortgage at the qualifying rate
PMT formula reversed: P = pmt × [(1+r)ⁿ−1] ÷ [r(1+r)ⁿ]
$1,982/mo @ 6.04% × 25yr → ≈ $306,000

Max purchase price
Max mortgage + down payment
$306,000 + $35,000 = $341,000

CMHC premium table

Down pmt	≤ 25yr amort	30yr amort *	Type
5%	4.00%	4.20%	Insured
10%	3.10%	3.30%	Insured
15%	2.80%	3.00%	Insured
20%+	N/A	N/A	Conventional

* 30yr +0.20% surcharge applies only for first-time buyers or new construction purchases

Premium is added to the mortgage amount. Premium × loan amount = insurance cost added to principal.

Debt ratios & credit

Beacon score & ratio limits

Credit score	GDS max	TDS max
600 – 679	35%	42%
680 +	39%	44%

GDS (Gross Debt Service) = mortgage pmt + property taxes + heating ÷ gross income
TDS (Total Debt Service) = GDS + all other monthly debts ÷ gross income
Canada credit range: 300 (min) → 900 (max) — mortgage min: 600

Welcome tax formula (Québec)

Tranche 1: $0 – $52,800 × 0.5%
Tranche 2: $52,801 – $264,000 × 1.0%
Tranche 3: Above $264,000 × 1.5%

Example $250,000:
$52,800 × 0.5% = $264
($250,000 − $52,800) × 1% = $1,972
Total = $2,236

Payment frequency formulas

Frequency	Formula
Monthly	PMT formula at monthly rate
Bi-weekly accelerated	Monthly ÷ 2 (26 payments/yr)
Weekly accelerated	Monthly ÷ 4 (52 payments/yr)

Accelerated payments save significant interest — equivalent to making one extra monthly payment per year.

Same model as the Planiprêt qualification guide: GDS = (mortgage payment + taxes + heating + 50% of condo fees) ÷ gross income | TDS = GDS + other debts ÷ gross income | the lower of the two caps the mortgage payment | Qualifying rate: the higher of the posted 5-year rate (5.25%) or contract rate + 2%, 25-yr amortization

Step 1 — Down payment

Insured mortgage

5% – 19.9%

down payment

Mandatory insurance premium
Insurers: CMHC, Sagen, Canada Guaranty
Maximum amortization: 25 years (30 years for First-Time Homebuyers)
Min. down payment for $500k: 5%
For $500k–$1,500,000: tiered 5% + 10%

Conventional mortgage

20%+

down payment

No insurance premium required
No mortgage insurer
Possible amortization: 30 years
Savings: thousands of dollars
Greater flexibility with the lender

CMHC / Sagen insurance premiums

Purchase price ($)

The 5% row uses the minimum down payment required by law: 5% on the first $500,000 + 10% on the portion between $500,001 and $1,500,000.

Down payment	25-Year Amortization			30-Year Amortization
Down payment	Premium	Example	9% Taxes	Premium	Example	9% Taxes
5%	4.00%	—	—	4.20%	—	—
10%	3.10%	—	—	3.30%	—	—
15%	2.80%	—	—	3.00%	—	—
20%+	N/A	$0	$0	N/A	$0	$0

The premium is added to the mortgage amount — it is not paid in cash at closing with the notary. It is financed over the full amortization period. The Example and 9% Taxes columns update automatically for both the 25-year and 30-year premium rates as the example amount changes.

Step 2 — Credit score (Beacon)

Canada's Beacon scale: 300 → 900

<600
Refusal 600–649
Limited 650–679
Acceptable 680–719
Good 720+
Excellent

Beacon 600 – 679

GDS max.35%

TDS max.42%

Reduced capacityYes

Beacon 680 and up

GDS max.39%

TDS max.44%

Optimal capacityYes

Step 3 — GDS & TDS qualification ratios

GDS — Gross Debt Service

Property-related costs only

Mortgage payment
Municipal taxes
Heating

÷ Gross monthly income

600–679

35% max

680+

39% max

TDS — Total Debt Service

All monthly payments

All GDS items
Credit cards
Car / student loans
All other monthly debts

÷ Gross monthly income

600–679

42% max

680+

44% max

Step 4 — Try it yourself

Gross annual income

Gross annual income (applicant + co-applicant)$70,000

$20,000$250,000

Or type an exact amount ($)

Profile & monthly assumptions

Credit score (Beacon)

Contract rate (%)
qualifies at rate + 2%

Taxes ($/mo)

Heating ($/mo)

Condo fees ($/mo)
only 50% counts

Other debts ($/mo)
car, cards, loans

Where the budget goes

Estimated capacity

—

max. mortgage

Mortgage payment—

Property costs—

Monthly debts—

Available margin—

TDS ratio—

GDS ratio—

Step 5 — Full calculation example

GDS — Limit 39%

Monthly budget (39%)—

Taxes—

Heating—

Condo (50%)—

Available for mortgage payment—

Mortgage capacity—

TDS — Limit 44%

Monthly budget (44%)—

Taxes—

Heating—

Condo (50%)—

Debts (car, cards…)—

Available for mortgage payment—

Mortgage capacity—

Result retained — the lower of the two: —

Your roadmap — 4 key steps

Build your down payment

Minimum 5% of the purchase price. At 20%+, you eliminate the CMHC premium entirely and unlock 30-year amortization — meaningful long-term savings.

Aim for a Beacon score of 680+

Pay down existing debts and avoid new credit applications before your file is submitted. A strong score unlocks the best GDS/TDS ratios (39% / 44%).

Reduce your monthly debts

Every $100 less in monthly debt ≈ $18,000 more mortgage capacity (at the 5.25% posted rate; less if your contract rate + 2% is higher, 25-year amortization). Try it above — drop the debts field and watch the capacity move.

Consult a Planiprêt broker

Access to 20+ lenders, negotiation on your behalf, support all the way to the notary. Serving Greater Montreal & the Laurentides.