Emin KoucharianMortgage Agent Level 1
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Calculators

Mortgage affordability calculator

See roughly how much home your household income and down payment could support, using the same ratios lenders use.

Before tax, including bonuses and other regular income.

Use a rate you've been quoted. The starting value is only an example.

Amortization
First-time home buyer?
Where is the home?

Living costs

Leave property tax and heating blank to use an estimate based on the price.

Monthly debt payments

The minimum payments you make each month. Leave blank if you have none.

Lines of credit, student loans, alimony or child support.

You could afford up to

$542,853

Limited by your housing costs, which can be up to 39% of your income.

Down payment
$60,000 11.1%
Default insurance
$14,968 3.10%
Mortgage amount
$497,821
Monthly payment
$2,755 at 4.5%, 25 years

How lenders check it

Stress test rate
6.50%
Housing costs to income
39.0% of 39%
Housing and debts to income
39.0% of 44%

Monthly costs

Mortgage payment
$2,755
Property tax
$452 estimate
Heating
$113 estimate
Total
$3,321

Cash needed to close

Down payment
$60,000
Land transfer tax
$7,332
Sales tax on insurance
$1,197
Legal fees and other costs
$2,700
Total
$71,230

Legal fees, title insurance, an inspection and an appraisal, at typical Ontario amounts.

Talk about a pre-approval

How this is calculated

  • Lenders check two ratios. Your housing costs (mortgage payment, property tax, heating and half of any condo fees) can be up to 39% of your gross income. Those costs plus your other debt payments can be up to 44%.
  • You have to qualify at the higher of 5.25% or your rate plus 2%. That's the stress test, and it applies whether or not you have 20% down.
  • If you leave property tax or heating blank, we estimate them from the home price: property tax at the rate you choose, and heating at 0.25% of the price a year.
  • Your down payment also sets a limit. The minimum is 5% on the first $500,000 and 10% on the portion above that, and homes at $1,500,000 or more need 20% down.
  • Default insurance (CMHC or another insurer) is required with less than 20% down and is only available on homes under $1,500,000. Premiums run from 2.80% to 4.00% of the mortgage, plus 0.20% for an amortization over 25 years, and are added to the mortgage.
  • Lenders also look at your credit, employment and the property itself, and some use lower limits than these.

These figures are estimates for illustration only and aren't a mortgage offer or approval. Your actual rate, payment and insurance premium depend on the lender, the property and your application.