Calculators · Buying

Qualification

The same stress test with every input lenders look at, including strata fees, the 30-year insured amortization for first-time buyers and new builds, and which ratio is holding you back.

Maximum purchase price

$338,000

With a $296,928 mortgage over 25 years and $50,000 down, including a $8,928 insurance premium. The TDS limit sets the ceiling.

Qualifying rate: 6.89%; Stress test
Payment at your rate: $1,708
Monthly cost of owning: $2,108; Payment, tax, heat, strata
GDS: 34.7%; Limit 39%
TDS: 43.9%; Limit 44%
Loan-to-value: 85%; Insured

What would move the ceiling

+$10,000 income+$52,000
−$200 monthly debt+$28,000
+$25,000 down+$34,000
Rate 0.5% lower+$14,000
30-yr amortization (first-time buyer)+$19,000

Summary

Purchase price: $338,000
Down payment: $50,000
Mortgage before insurance: $288,000
Insurance premium added: $8,928
Total mortgage: $296,928

Pre-approval is the real answer

This mirrors the federal rules lenders apply, but each lender adds its own policies on income, credit and property type. I can introduce a mortgage professional who will confirm your number.

Assumptions behind these figures

GDS 39% and TDS 44%, measured at the greater of your rate + 2% and 5.25%.
Half of strata fees count toward housing costs. Debts are taken as entered.
Insured amortization is capped at 25 years, or 30 for first-time buyers and newly built homes; conventional at 30.

These calculators are educational illustrations, not advice and not an offer of credit. Figures are estimates from the inputs you enter and simplified rules; your lender's calculation, rates, fees, taxes and qualification will differ and are confirmed only by a licensed mortgage professional, lawyer or accountant. Mervin Truong is a licensed real estate professional, not a mortgage broker or financial advisor.

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From estimate to plan

Talk to Merv about the real numbers.

A calculator describes a scenario. I'll read it against what's selling now and introduce a licensed mortgage professional to confirm what you qualify for.

QualificationQualification

Talk to Merv about the real numbers.

QualificationQualification

Talk to Merv about the real numbers.

Qualification

Qualification