Have Questions? Here is a 3 minute video walk through on how to use this calculator
Monthly Payment includes Mortgage, Property Taxes and Condo Fees (if applicable)
Max Debt Payment is the maximum amount of NON mortgage debt (loans and credit card minimums) that can be carried each month. Any debt obligations above this number will begin to reduce your maximum mortgage affordability. PRO TIP A $475 monthly car loan can reduce your mortgage affordability by $100,000.
A Credit Score of 680+ was used to determine the required income. It is recommended that your credit score be at least 600. Your credit score can be obtained for free and instantly at Credit Karma, Borrowell, RBC + Scotiabank online banking.
Credit Requirements – In addition to a credit score of 600+, most mortgage insurers require that you have at least 2 credit items (loan, credit card, line of credit) open for at least 2 years and in good standing. This is generally a requirement for each applicant. There is an exception to this rule for those New To Canada (permanent + non permanent resident that arrived within the last 5 years).
30 Year Amortizations are available for down payments of 20% or more. A longer amortization helps lower the income required.
Mortgages above $1,000,000 require 20% down.
Mortgage Insurance (CMHC, Genworth, Canada Guaranty) is required in Canada for mortgages with less than 20% down payment.
Qualifying Rate – Borrowers must qualify using the Bank of Canada (BoC) qualifying rate or the lenders mortgage rate plus 2%, whichever is higher.
The Gross Debt Service ratio (GDS) is set to 39% by default for credit scores 680 and higher. If your credit score is between 600-680, set the GDS to 35 for a more accurate income calculation. Lenders like TD Bank set GDS to 35% with a minimum credit score of 650 and GDS to 39% for scores 680+.
