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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.
- Want an indepth breakdown of your mortgage? Check out our primary mortgage calculator.
How much can I afford?
How much can you afford?
Unfortunately, given your current financial situation, now is not the time to buy a home.
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.
How to improve your situation
You shouldn't be disappointed in this result, because the future holds many opportunities. If you eliminate some debts or improve your income, you will be shocked just how profound an effect this can have on your eligibility for a mortgage.