The first step in buying a house is 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.
Definitions for each term can be found here.
|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.|
|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).|
|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||Total up front costs to close your loan. This is the total of your mortgage insurance 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 misc. fees paid.|
|GST||This calculator calculates GST at 7% of a new home’s purchase price minus a GST rebate. GST rebates are calculated as follows. For homes under $350,000, the rebate amounts to 36% of GST, up to a maximum rebate of $8,750. For homes between $350,000 and $450,000, the maximum rebate of $8750 declines to zero on a proportional basis. All homes selling for more than $450,000 receive no GST rebate.|
|Mortgage Loan Insurance Premium (non-refundable)||Mortgage insurance makes it possible for homebuyers to purchase a home using a lower down payment. The Canadian Bank Act prohibits most federally regulated lending institutions from providing mortgages without mortgage loan insurance for amounts that exceed 75% of the value of the home or purchases with less than 25% down payment. The Canadian Mortgage and Housing Corporation (CMHC) and Genworth Financial both offer Mortgage Loan insurance.|
|CMHC’s current Mortgage Loan insurance Premium Rates:|
(% of property value)
|Rate (as a % of loan)|
|Up to and including 65% (over 35% down payment)|
|Up to and including 75% (25% to 34.99% down payment)|
|Up to and including 80% (20% to 24.99% down payment)|
|Up to and including 85% (15% to 19.99% down payment)|
|Up to and including 90% (10% to 14.99% down payment)|
|Up to and including 95% (5% to 9.99% down payment)|
|Up to and including 95% Flex Down or Cash Back Equity Owner-Occupancy Program** (5% to 9.99% down payment)|
This calculator does not include Genworth’s Top-up Premiums or Blended Amortization for refinancing.
**Not all Financial Institutions offer CMHC’s Flex Down and Genworth Financial’s Cashback Equity Owner-Occupancy Program.
Below is a brief summary of the two programs:
Ineligible loan purpose:
Eligible equity sources
Ineligible equity sources
Some equity sources are not eligible. These include sources that are not arm’s length or that are tied to the purchase or sale of the property, either directly or indirectly. For example: