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Current Mortgage Rates
Variable closed: 5.8% 1 year closed: 5.99% 3 year closed: 5.34% 5 year closed: 4.69% 10 year closed: 5.99%
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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?
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
Here is some more information about what is used for qualifying you:
|Qualifying housing costs:||$100 (before mortgage)|
|Total monthly costs:||$800 (before mortgage)|
|Qualifying rate||4.69% (As entered)|
|Maximum GDS ratio||32%|
|Maximum TDS ratio||40%|
|Plus down payment:||$20,000|
|Maximum home purchase price:||$620,000|
|Monthly property tax:||$336|
Were you to buy a home worth $620,000, your mortgage would be likely similar to this:
|Basic mortgage amount:||$600,000|
|Loan to value ratio:||97%|
|CMHC insurance premium:||$24,000 (4.00% of principal)|
|Mortgage with CMHC insurance:||$624,000|
|Your ratios upon qualifying|
|Actual GDS ratio:||32%|
|Actual TDS ratio:||38%|
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