it's always a good idea to know just how
much you can afford before beginning
your home search. This helps to avoid
unpleasant surprises. There are some
general "rules of thumb" when
calculating how much you can comfortably
afford when it comes to buying a home.
Your Gross Debt Service Ratio (GDS)
should not exceed 32% of your gross
monthly household income. These
costs include your mortgage, property
taxes, heating costs and any condo fees,
if applicable. Your Total Debt Service
ratio (TDS) should not exceed 40% of
your gross monthly income. This includes
all of your GDS, plus other debts, like
car payments (even leases), personal
loans, lines of credit and credit card
payments.
For a
quick and easy method to calculate
approximate monthly mortgage
payments, use our interactive
mortgage estimator below.
More Calculators
Bi-Weekly Mortgage Estimator: This will show you how much you will save if you make 1/2 of your mortgage
payment every two weeks instead of making a full mortgage payment once a month.
Mortgage Payoff Goal Estimator: This will show you the additional monthly payment you will need to make on your
current mortgage in order to pay if off within a specified number of years.
For Prompt, Professional Service and to have all your mortgage questions
answered, click on the image below
to visit Canada Mortgage
Direct
* Important note! All
calculators on this web site are for
general, illustrative purposes only.
Projections are based upon
assumptions and estimates, and based
upon the variables provided.
Calculated results may not represent
the exact results that would be
provided by your specific lending
institution and are not guaranteed
to be accurate or complete. With
regard to mortgages, this calculator
uses a basic method of calculating
mortgage payments on fixed rate
mortgages. The applicable interest
rate will be determined at the time
of application and your actual loan
payments may differ slightly. Loan
applicants must meet the lending
institution's standard lending
criteria before approval may be
granted. There is no warranty,
expressed or implied, for the
accuracy of this information. The
owner of this website does not make
any guarantees or assumes any
liability as to it's applicability
to your financial situation
