1-800-604-1864

# 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 I afford?

 Combined monthly income: Down payment available: How's your credit? I have good creditI haven't missed a payment in a decade Mortgage term/rate: Variable at 6.19%1 year at 6.74%2 year at 6.37%3 year at 5.59%4 year at 5.52%5 year at 5.09%7 year at 6.09%10 year at 6.14%Other rate
 Custom rate:
 Amortization: 10 years11 years12 years13 years14 years15 years16 years17 years18 years19 years20 years21 years22 years23 years24 years25 years Estimated heating costs: (Per month) Monthly condo fees: All other monthly obligations: Consider these for monthly obligations: Credit card/line of credit payments, car lease/loan, alimony & child support, insurance.

## 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%.

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

 Your Information Monthly income: \$12,400 Qualifying housing costs: \$100 (before mortgage) Total monthly costs: \$800 (before mortgage) Qualification Data Qualifying rate 5.09% (As entered) Maximum GDS ratio 32% Maximum TDS ratio 40% Home Price Maximum mortgage: \$575,000 Plus down payment: \$20,000 Maximum home purchase price: \$595,000 Monthly property tax: \$322

## Mortgage Calculations

Were you to buy a home worth \$595,000, your mortgage would be likely similar to this:

 Mortgage Details Basic mortgage amount: \$575,000 Down payment: \$20,000 Loan to value ratio: 97% Amortization: 25 years CMHC insurance premium: \$23,000 (4.00% of principal) Mortgage with CMHC insurance: \$598,000 Mortgage rate: 5.09% Monthly payment: \$3,509 Your ratios upon qualifying Actual GDS ratio: 32% Actual TDS ratio: 37%

Mortgage Rates
Our rates can change on a day-to-day basis. Find out about today's mortgage rates!

Compare Today's Best Rates
We have nothing to hide and that's why we post all of Canada's current mortgage rates for you to compare. We strive to maintain our spot at the top of that list each and every day with the best mortgage rate available.