What does PITH stand for?

PITH stands for Principal, Interest, Taxes, and Heat. It represents the total carrying cost of a home that Canadian lenders use to calculate your Debt Service Ratios (GDS/TDS).

How much of my condo fees do banks count?

In Canada, most lenders count 50% of your monthly condo fees toward your Debt Service Ratios when qualifying you for a mortgage.

What is a good GDS ratio?

To qualify for a standard mortgage in Canada, your Gross Debt Service (GDS) ratio—which is your PITH costs divided by your gross income—should generally be below 32% to 39%.

What Banks Don’t Tell You About Your Mortgage: Understanding PITH

When you browse real estate listings, the “estimated mortgage” shown at the bottom of the page is almost always wrong. Why? Because it only calculates Principal and Interest.

In Canada, banks don’t just care if you can pay the loan—they care if you can afford the house. To do this, they use a formula called PITH.

Understanding PITH is the difference between getting a “Yes” from your lender and being hit with a last-minute rejection. Today, we’re showing you how to use the Property Details tool in our Mortgage Calculator to see your true monthly carrying costs.

The Breakdown: What is PITH?

P - Principal: The part of your payment that pays back the actual loan. I - Interest: The cost of borrowing the money. T - Taxes: Your annual municipal property taxes divided by 12. H - Heat: A flat monthly estimate for heating your home (usually $50–$150).

The “C” Factor (Condo Fees): If you are buying a condo, lenders also add 50% of your monthly condo fees to this total.

Why PITH is the “Real” Number

When you apply for a mortgage, the bank calculates your Gross Debt Service (GDS) ratio. They take your total PITH costs and divide them by your gross household income.

If your P&I payment is $2,500…
But your PITH payment is $3,200…

The bank uses the $3,200 figure to decide if you are “qualified.” If you only planned for the $2,500, you might find yourself house-poor or unable to close the deal.

How to Calculate Your True Cost

Our Canadian Mortgage Calculator now features a dedicated Property Details (PITH) section.

Enter your Asking Price and Down Payment.
Open the “Property Details” accordion.
Enter the Annual Property Taxes (found on the Realtor.ca listing).
Enter an estimate for Monthly Heating (usually ~$100 for a house).
If it’s a condo, enter the Monthly Condo Fees.

The Hero Result

Watch the main results card at the top. It will switch from “Regular Payment” to “True Monthly Cost (PITH)”.

This Indigo card now shows you the exact number your bank is looking at. It includes your mortgage payment plus 1/12th of your taxes, your heat, and 50% of your condo fees.

Hidden Costs: The CMHC PST

If you are buying with less than 20% down in Ontario, Quebec, or Saskatchewan, there is one more “stealth” cost. While your CMHC insurance premium is added to your mortgage, the Provincial Sales Tax (PST) on that premium must be paid in cash on closing day.

Our calculator’s “Est. Cash to Close” card now automatically detects your province and includes this PST calculation, so you aren’t surprised by an extra $1,000+ bill at the lawyer’s office.

Take Control of Your Affordability

Don’t let the banks do the math for you. Use the True Cost Calculator today to see exactly how much house you can afford to live in, not just borrow for.