Monday, March 30, 2015


Real estate

Mortgage qualifier

The first steps in buying a house are ensuring you can afford to pay at least 5% of the purchase price of the home as a down payment and 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.

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in.


Annual income

Your gross annual income. For married couples this is your total combined gross annual income. Please note that if you enter a purchase price or total monthly payment the calculator will determine the gross annual income required to qualify for the purchase. This calculated amount may be higher or lower than your actual income.

Purchase price

The price of the home you wish to purchase. This is the actual price you pay, not including any closing costs. If you enter an annual income or a total monthly payment, the purchase price will be calculated based on these amounts.

Total monthly payment

Total monthly payment that you can qualify for. This is the total of principal, interest, taxes and heat paid each month. If you enter a purchase price or annual income, the total monthly payment will be calculated based on these amounts.

Cash on hand

Cash you have for the down payment and all closing costs. You can purchase a home with as little as 5% down payment with mortgage loan insurance. An ideal down payment is between 10 - 20% of the purchase price of the home.

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) or lease(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

The total initial costs required to complete the transaction. It is the sum 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 miscellaneous fees payable.

CMHC premium

Mortgage insurance must be contracted with the Canada Mortgage and Housing Corporation (CMHC). It applies to all loans secured with a down payment less than 25% (up to 35% in the case of certain financial institutions). This calculator assumes the institution will not require any CMHC premium if initial payment is more than 25%. The CMHC premium is calculated as follows:

Current Mortgage Loan insurance Premium Rates (% of property value)
Up to and including 65% (over 35% down payment) 0.5%
Up to and including 75% (25% to 34.99% down payment) 0.65%
Up to and including 80% (20% to 24.99% down payment) 1.00%
Up to and including 85% (15% to 19.99% down payment)1.75%
Up to and including 90% (10% to 14.99% down payment)2.00%
Up to and including 95% (5% to 9.99% down payment) 2.75%

Gross debt service ratio (GDSR)

Compares your total monthly payments (mortgage, taxes and heating costs) to your monthly gross income (net taxes) from all sources. Typically, these monthly payments should not exceed 32% of your gross income.

Total debt service ratio (TDSR)

Compare your total monthly payments (mortgage payments, property taxes, car loans, credit cards, loans and other obligations, etc.) to your monthly gross income. Generally, the total of these monthly payments should not exceed 40% of your gross income.

Eligible amount

Shown as "Total monthly payment" for which you qualify. It includes the principal, interest, taxes and heating costs for your home.

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