|
Mortgage Qualifier Calculator (calculator)
The first step in buying a house is determining your budget. This calculator
steps you through the process of finding out how much you can borrow.
Fill in the entry fields and click on the payment schedule button to
see a complete amortization schedule of your mortgage payments.
Definitions
Annual income Your gross annual income. For married couples this is
your total combined gross annual income.
--------------------------------------------------------------------------------
Purchase price The price of the home you wish to purchase. This is the
actual price you pay, not including any closing costs.
--------------------------------------------------------------------------------
Total monthly payment Total monthly payment that you can qualify for.
This is the total of principal, interest, taxes and heat paid each month.
--------------------------------------------------------------------------------
Cash on hand Cash you have for the down payment and all closing costs.
--------------------------------------------------------------------------------
Interest rate The current interest rate you can receive on your mortgage.
--------------------------------------------------------------------------------
Amortization in years The number of years over which you will repay
this mortgage.
--------------------------------------------------------------------------------
Annual property taxes The annual property tax paid on the home you are
purchasing.
--------------------------------------------------------------------------------
Monthly car payment(s) Total monthly payment for your car loan(s).
--------------------------------------------------------------------------------
Credit card payments Total monthly minimum payments for your credit
cards.
Other loan payments Any other installment loan payments, such as student
loans or unsecured loans.
--------------------------------------------------------------------------------
Total closing costs Total up front costs to close your loan. This is
the total of your CMHC premium, transfer tax, GST and other closing
costs.
--------------------------------------------------------------------------------
Other closing costs Estimate of all other closing costs for this loan.
This should include filing fees, appraiser fees and any other misc.
fees paid.
--------------------------------------------------------------------------------
CMHC Premium Mortgage insurance is paid to the Canadian Mortgage and
Housing Corporation (CMHC). This includes all loans secured with less
than 25% down and depending on your financial institution, with as much
as 35% down. This calculator assumes that financial institutions will
not charge any CMHC premium if you have more than a 25% downpayment.
The CMHC premium is calculated as:
CMHC Insurance Premium Rates:
Loan to Value Ratio Rate (as a % of loan)
Up to and including 65% (25% to 35% down payment) 0.5%
Up to and including 75% (20% to 25% down payment) 0.75%
Up to and including 80% (15% to 20% down payment) 1.25%
Up to and including 85% (10% to 15% down payment) 2.00%
Up to and including 90% (5% to 10% down payment) 2.50%
Up to and including 95% (5% down payment) 3.75%
--------------------------------------------------------------------------------
GDSR: Gross Debt Service Ratio Compares the total cost of your monthly
mortgage payment, taxes and heating to your gross monthly (pre-tax)
income from all sources. The general rule is that these monthly payments
should not exceed 32% of your gross income.
--------------------------------------------------------------------------------
TDSR: Total Debt Service Ratio Examines the relationship between all
monthly debts (i.e. mortgage payments, property taxes, cars, credit
cards, other loans and obligations, etc.) and your gross monthly income.
The general rule is that these total monthly payments should not exceed
40% of your income.
--------------------------------------------------------------------------------
Qualify amount Shown as "Total monthly payment." This is the
total amount you qualify for per month. This amount is the total of
"Principal, Interest, Tax and Heat" for your home.
|