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Mortgage Affordability Calculator

Finding out how much you can afford is the first step in looking for a new house. Using our mortgage affordability calculator, we can calculate the highest purchase price you can qualify for based on your income and expenses.

Mortgage affordability

Mortgage affordability in Canada refers to the ability of an individual or household to afford a mortgage loan based on their financial situation, including income, expenses, credit history, and other factors.

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Frequently asked questions

The Canada Mortgage and Housing Corporation (CMHC) recommends that your monthly housing costs (including mortgage principal and interest, taxes, and heating expenses) should not exceed 32% of your gross household monthly income, up to a maximum of 39%.

The minimum down payment required in Canada depends on the purchase price of the home. For properties priced up to $500,000, the minimum down payment is 5%. For properties priced between $500,000 and $999,999, the minimum down payment is 5% on the first $500,000 and 10% on the remaining amount. Properties priced at $1 million or more require a minimum down payment of 20%.

Mortgage default insurance (also known as CMHC insurance) is required for homebuyers who have a down payment of less than 20%. It protects lenders in case the borrower defaults on the mortgage. The cost of this insurance is added to your mortgage payments.

The CMHC insurance premium is based on the loan-to-value ratio (LTV). The premium varies depending on the down payment amount and the total mortgage amount. You can use online calculators to estimate the CMHC insurance cost.

Use a mortgage affordability calculator to determine the maximum purchase price you can qualify for based on your income, expenses, and other factors. It’s essential to consider both the mortgage amount and the cash required for down payment and closing costs.

The maximum mortgage amortization period in Canada is 25 years for down payments less than 20%. If you have a down payment of 20% or more, you can extend the amortization period up to 35 years.

First-time homebuyers may be eligible for a partial or full exemption from the Land Transfer Tax (LTT) in certain provinces. When you select the First-Time Home Buyer option, the calculator adjusts the LTT estimate accordingly.

The Estoppel certificate fee is a charge associated with condominium purchases. It covers the cost of obtaining information about the condo corporation, including financial statements, bylaws, and other relevant details. The fee varies depending on the condo management company.

Your mortgage eligibility depends on various factors, including your salary, other debts, credit score, and interest rates. A $70,000 salary can support a mortgage, but the exact amount will vary based on individual circumstances. Use a mortgage calculator to get a personalized estimate.

The amount you can borrow against your house (home equity) depends on the current market value of your property, any existing mortgages or liens, and the lender’s policies. Generally, you can access up to 80% of your home’s appraised value through a home equity line of credit (HELOC) or a second mortgage.