Sue Burnett, Centre Wellington, Fergus, Elora, Real Estate, MLS, Realtor, RE/MAX, Remax, Buying, Selling , Homes, For sale, Listings, Agents, Sales Representative, Top Agents,
Sue Burnett
782 Tower St S Fergus, ON N1M 2R3
Mobile: 519 820 7317 Fax: 519 787 1761 Email Sue

How Much Can You Afford?


ON 1ST JANUARY 2018 NEW LENDING RULES TAKE EFFECT.

Under the new rules ALL buyers will have to show they can afford their mortgage payments at either the five-year average rate posted by the Bank of Canada, or two percentage points higher than whatever deal they were able to negotiate — whichever measurement is higher.

Pre qualification is essential as you will commence looking for a home or investment knowing exactly what you can or cannot afford.  Remember pre qualification only applies to you! Many banks may still want to qualify the actual home you purchase.

The calculator below will help you determine loan amounts, mortgage qualification, affordability or whether you should be renting or buying. Remember to increase the mortgage percetage by 2% and that this is just a guide and does not replace the valued opinion of a mortgage expert who will look at your financials as a whole and advise you fully and keep you posted of any rate changes ar regulations that could affect your affordability whilst you shop for a home..

If you have any questions, please don't hesitate to contact me and I will refer you to an expert that will ensure you .

Required Fields
Term In Years:     
Interest Rate:      %
Cost of Home:  $
Down Payment:  $  
Annual Insurance:  $  
Estimate Insurance to 0.43% of Cost
Annual Property Tax:  $  
Estimate Tax to 1.2% of Cost
Monthly Income:  $
Monthly Debt:  $
Optional Fields
Gross Debt Service Ratio (GDS):     
Total Debt Service Ratio (TDS):     
Condos Fees:  $
Results
  Receive this Detailed Analysis

Your Monthly Payments
 
Loan Amount:
Loan Insurance (%):
Total Loan (Mortgage) Amount:
 
Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:
Income Needed to Qualify for the Mortgage
Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:
What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:
 
Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] /
(monthly interest rate/ function of interest rate)
Renting
Monthly Rent: $
Annual Rental Increases:  %
Monthly Renter Insurance: $
Savings or Investment Rate:  %
 
Owning
Planned # of years in home: 
Yearly appreciation of the home:  %
Annual home maintenance:  %