Mortgage Affordability Calculator
This calculator can help you determine how much you can afford to spend on a house.
We follow the same guidelines lenders and brokers use to determine the maximum mortgage you can qualify for. We recommend experimenting with different mortgage rates, monthly obligations, and credit scenarios, as these have a large effect on how much you can afford.
How much can you afford?
About $625,000
And here's why:
The amount you can qualify for depends on your credit history and your ratios of debt to income (TDS and GDS ratios.) The normal maximum TDS & GDS ratios are 40% and 32% respectively, but for those with exceptional credit, the mortgage qualification process only looks at the TDS ratio, and relaxes it to as much as 44%.
For your convenience:
GDS Ratio: Your Gross Debt Service Ratio is your monthly housing costs (mortgage, heating, half of condo fees, property taxes) divided by your income.
TDS Ratio: Your Total Debt Service Ratio is all of your monthly obligations divided by your income.
Qualification Calculation Details
Here is some more information about what is used for qualifying you:
| Your Information |
| Monthly income: |
$12,400 |
| Qualifying housing costs: |
$100 (before mortgage)
|
| Total monthly costs: |
$800 (before mortgage)
|
| |
| Qualification Data |
| Qualifying rate |
4.54% (As entered) |
| Maximum GDS ratio |
32%
|
| Maximum TDS ratio |
40% |
| |
| Home Price |
| Maximum mortgage: |
$605,000 |
| Plus down payment: |
$20,000 |
| Maximum home purchase price: |
$625,000 |
| Monthly property tax: |
$339 |
Mortgage Calculations
Were you to buy a home worth $625,000, your mortgage would be likely similar to this:
| Mortgage Details |
| Basic mortgage amount: |
$605,000 |
| Down payment: |
$20,000 |
| Loan to value ratio: |
97% |
| Amortization: |
25 years |
| |
| CMHC insurance premium: |
$24,200 (4.00% of principal) |
| Mortgage with CMHC insurance: |
$629,200 |
| |
| Mortgage rate: |
4.54% |
| Monthly payment: |
$3,496 |
| |
| Your ratios upon qualifying |
| Actual GDS ratio: |
32% |
| Actual TDS ratio: |
37% |
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