Learn more. A line of credit to help conquer your goals. Learn more about this low introductory rate. Start saving today, tax-free. Learn more about tax-free savings accounts. Meet with us Opens in a new window. Life Moments. How To. Tools and Calculators. Use our calculator to get an estimate on your price range that fits your budget, along with mortgage details.
Gross annual household income is the total income, before deductions, for all people who live at the same address and are co-borrowers on a mortgage. A down payment is the amount of money, including deposit, you put towards the purchase price of a property. Selecting your province or territory helps us personalize your mortgage results. Enter your total monthly payments towards any car loans, student loans or personal loans.
Enter the total amount you currently owe from all credit cards and lines of credit. If you want to buy a condo, you'll need to pay fixed monthly condo fees that cover costs, such as building insurance, property maintenance and more.
Monthly mortgage payment. Tip: Consider increasing your down payment to to qualify for a maximum purchase price of approximately. Interest is the money you pay to your lender for using the funds you borrow.
Use the interest rate shown or enter a new one using only numbers. Amortization period is the amount of time it takes to pay off your mortgage in full, including interest. This period may be up to 25 years if the mortgage is default insured, and up to 30 years if it's not.
For a new mortgage, it's usually 25 years. The monthly property tax amount depends on your property's market value. They take into account your income, monthly housing costs, and overall debt load. The first affordability guideline, as set out by the Canada Mortgage and Housing Corporation CMHC , is that your monthly housing costs — mortgage principal and interest, taxes, and heating expenses P.
For condominiums, P. The sum of these housing costs as a percentage of your gross monthly income is your GDS ratio. In addition to housing costs, your total monthly debt load would include credit card interest, car payments, and other loan expenses. The sum of your total monthly debt load as a percentage of your gross household income is your TDS ratio.
Our mortgage calculator uses these maximum limits to estimate affordability. The CMHC changes will have minimal impact on borrowers as GenWorth Financial and Canada Guaranty, the two other mortgage insurance providers in Canada, did not change their maximum limits.
Your down payment is a benchmark used to determine your maximum affordability. Ignoring income and debt levels, you can determine how much you can afford to spend using a simple calculation.
The maximum home price you could afford would be:. In addition to your down payment and CMHC insurance, you should set aside 1. Many home buyers forget to account for closing costs in their cash requirements.
In addition to your debt service ratios, down payment, and cash for closing costs, mortgage lenders will also consider your credit history and your income when qualifying you for a mortgage. All of these factors are equally important. For example, even if you have good credit, a sizeable down payment, and no debts, but an unstable income, you might have difficulty getting approved for a mortgage.
To get the most accurate picture of what you qualify for, speak to a mortgage broker about getting a mortgage pre-approval. If you want to increase how much you can borrow, thus increasing how much you can afford to spend on a home, there are few steps you can take. A larger down payment also saves you money on the cost of CMHC insurance. Get a better mortgage rate: Shop around for the best mortgage rate you can find, and consider using a mortgage broker to negotiate on your behalf.
A lower mortgage rate will result in lower monthly payments, increasing how much you can afford. It will also save you thousands of dollars over the life of your mortgage. Increase your amortization period : The longer you take to pay off your loan, the lower your monthly payments will be, making your mortgage more affordable.
However, this will result in you paying more interest over time. These are just a few ways you can increase the amount you can afford to spend on a home, by increasing your mortgage affordability. However, the best advice will be personal to you. Mortgage Affordability Calculator Content last updated: January 7, When searching for a new home, the first step is to figure out how much mortgage you can afford.
Advertising Disclosure Inputs. Property Tax: Property Tax An annual tax levied by the municipality in which your home is located.
We have used an estimate based on the average in your province. Your combined income will be used to calculate the mortgage you can afford. Condo Fees: Condo Fees Condo fees cover common building expenses and maintenance in multi-unit properties. If you have sources of income other than a salary, ask your lender if they will include these sources for mortgage qualification.
For example, self-employment income, commissions, bonuses, tips, investments, rental income, spousal and child support payments, disability insurance payments, etc. We want to hear from you! Please tell us what you think of this tool and how we can make it better. Skip to main content Skip to "About this site". The bank must use the higher interest rate of either: 5.
This is the amount you expect to borrow from your financial institution. It may include the purchase price of your home plus the mortgage loan insurance. Down Payment. Annual Interest Rate. Annual interest rate for this mortgage. If this amount is higher than your monthly income before taxes, please contact us to discuss your options. Based on a purchase price of , here's what your mortgage loan payment, other housing costs and available cash would be:.
Enter the purchase price that best suits your comfort level for your monthly budget. Your mortgage amount will be updated. The premium amount will be added to the mortgage, and will then become part of your ongoing regular payments.
In this scenario, the maximum amortization period is 25 years. Includes property taxes, heating, condo fees when they apply and house maintenance. You can add in utilities and property insurance for a more accurate total monthly estimate.
Based on the amount of your mortgage loan, debt payments and other expenses, this is the amount you have left over each month. There are no properties currently listed on Realtor. Please contact your branch or call Find out how much mortgage you can afford. Enter city and province. Use current location. How much mortgage can I afford?
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