How much mortgage approval can i get

Type of commitment Amount. Fixed monthly payments. Home expenses Being a homeowner comes with expenses other than mortgage payments. Type of property. Single-family home Condo Duplex Multiplex. Municipal and school taxes. Heating costs. Condo fees. Rental Income. You can buy a house of: , Down payment: 20, Maximum mortgage amount: , Monthly payments: 1, Based on the income and financial commitments you entered, you do not meet the National Bank's eligibility ratios for mortgage financing.

Learn more. Thinking about buying? Mortgage default insurance protects your lender if you can't repay your mortgage loan. You need this insurance if you have a high-ratio mortgage, and it's typically added to your mortgage principal. Apply now to get pre-approved or request a call from one of our Mortgage Advisors. They'll guide you through the next steps.

Results are based on the information you provide, estimates and assumptions on which pre-filled amounts are based, and interest rates which, for purposes of the calculation, are assumed to remain constant throughout the term. Actual rates may vary and will affect the amount you can borrow.

How much mortgage can I afford? Mortgage tools and calculators. Fixed rate mortgages. Variable rate mortgages. Learn how to start the home-buying process and what to look for in your agreement of purchase and sale. Need a few extra dollars for a down payment on your first home? Learn how to tap into your RRSP for more funds.

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Credit Cards. Explore Insurance. The mortgage rate you pay today could be substantially different from the mortgage rates available when the time comes to renew your mortgage. The calculation below shows how much of your mortgage principal will be left at the end of the term. Using this amount, below we calculate the corresponding mortgage payments at a variety of interest rates:. Below is a graph that displays the approximate values of competitive 5-year fixed mortgage rates since When you're looking to buy a home, it's handy to know how much you can afford.

Being able to calculate an estimate of how much you're able to borrow is an important part of setting your budget.

You also need to determine if you have enough cash resources to purchase a home. The cash required is derived from the down payment put towards the purchase price, as well as the closing costs that must be incurred to complete the purchase. We can help you estimate these closing costs with the first tab under the mortgage affordability calculator above.

Taken together, understand how large a mortgage you can afford to borrow and the cash requirements will help you determine what kind of home you should be on the look out for. To learn more about mortgage affordability, and how our calculator works, have a read of the information below. The higher your mortgage affordability, the more expensive a home you can afford to purchase. If the cost of housing relative to the average income in a city is high, it will be seen as a less affordable place to live.

There are many factors that will affect the maximum mortgage you can afford to borrowincluding the household income of the applicants purchasing the home, the personal monthly expenses of those applicants car payments, credit expenses, etc. How much you can afford to spend on a home in Canada is most determined by how much you can borrow from a mortgage provider. That is unless you have enough cash to purchase a property outright, which is unlikely. Use the above mortgage affordability calculator above to figure out how much you can afford to borrow, based on your current situation.

You can change your amortization period and mortgage rate, to see how that would affect your mortgage affordability and your monthly payments. There is a rule of thumb about how much you can afford, based on the calculations your mortgage provider will make.

This rule is based on your debt service ratios. Lenders look at two ratios when determining the mortgage amount you qualify for, which generally indicate how much you can afford. They take into account your income, monthly housing costs, and overall debt load. The first affordability guideline, as set out by the Canada Mortgage and Housing Corporation CMHC , is that your monthly housing costs — mortgage principal and interest, taxes, and heating expenses P.

For condominiums, P. The sum of these housing costs as a percentage of your gross monthly income is your GDS ratio. In addition to housing costs, your total monthly debt load would include credit card interest, car payments, and other loan expenses. The sum of your total monthly debt load as a percentage of your gross household income is your TDS ratio.

Our mortgage calculator uses these maximum limits to estimate affordability. The CMHC changes will have minimal impact on borrowers as GenWorth Financial and Canada Guaranty, the two other mortgage insurance providers in Canada, did not change their maximum limits. Your down payment is a benchmark used to determine your maximum affordability. Ignoring income and debt levels, you can determine how much you can afford to spend using a simple calculation.

The maximum home price you could afford would be:. Now that you have your home estimate, browse our collection of helpful articles and blog posts, use our tools to determine your mortgage payments, review current rates and see how to start your home buying journey.

Check out our helpful how-to articles and informative blog posts, as well as things to consider before buying a home. Read our content. Look up important mortgage terms in our comprehensive dictionary, and use our calculators to help set your budget. Explore our tools. See our FAQs for answers to common questions on buying, refinancing and owning a home. Check out our FAQs.

Learn more about mortgages, access helpful tools and get tips on becoming a homeowner. Knowing how much how you can afford is a great starting point in your home buying process. We created our affordability calculator to help you understand your budget from the moment you start looking for a home. Simply enter your monthly income, expenses and specified mortgage rate.

Choose between loan terms of , , and year mortgages and see your estimated home price, loan amount, down payment and monthly mortgage payments change. Our mortgage calculato r and home value estimator can help you be a confident homeowner. With our mortgage calculator, you can see an estimate of your total mortgage payment, including principal, interest, taxes, and insurance. And our home value estimator shows you how much the homes you're looking at may be worth.

From just thinking about buying to owning your own home, our how-to articles and blog posts are here to help you at every step.