Mortgage Qualifier Calculator
Are you tired of renting, and are now looking to purchase your first home? Making the first step towards owning a home is scary for many people, but understanding the requirements for a mortgage can help you avoid many of the mistakes made by first-time buyers.
The first step in buying your home is determining your budget. The mortgage qualifier calculator will show you how much you can afford if you fill in the entry fields correctly and click on the “Click to Calculate” button to view a complete amortisation schedule of the mortgage payments.
Here are some useful definitions:
Annual Income – For married couples, this refers to the total combined gross annual income. Generally, it is the combined gross annual income for the applicant and his/her co-borrower. Include all income before taxes, including bonuses, base salary, commissions, tips, overtime, investment income, rental income, child support, alimony, etc.
Annual taxes – This includes income taxes, property taxes, and any other taxes you and your partner are currently paying. The income tax is the annual tax placed on your income by the government, and can vary based on income, location, and other factors. If you are currently paying property tax on your home, the annual amount should also be included.
Monthly Condo Fees – This is the monthly fee charged for your condominium that you’re currently incurring.
Monthly Heating Cost – This is the total monthly payment for your current home’s heating bill. Although there are other monthly costs associated with properly running a house, such as cable, telephone, gas, water, etc., they are not incorporated in the calculation. However, you can include them for a more accurate estimate of your monthly payment.
Monthly Mortgage Details
Mortgage Payment (principle and interest) – This refers to the monthly principle and interest payment for your mortgage, and does not include the amounts for maintenance or property taxes.
Property Tax – This is the monthly property tax that you expect to pay on the home you want to purchase.
Monthly Condo Fees – Unlike the previous condo fees, this amount refers to the fee that you expect to incur with ownership of the home. Usually, 50 percent of your condo fee is added to your Gross Debt Service (GDS) when calculating the maximum mortgage you qualify for.
Monthly Heating Costs – The total monthly payment for the heating bill for the home you’re purchasing. You may choose to include other essential costs for running the home, such as water, cable, phone, etc.
Total Costs – This refers to every cost that you currently incur, including your monthly car loan payments, credit card payments, other loan payment, as well as the total closing costs, including the total upfront costs to close your loan, filing and appraisal fees, and any other miscellaneous fees paid.
Monthly Income Required (Approximate) – An estimate of how much you can afford to borrow in order to buy a home.
Like any estimate, the result of Mortgage Qualifier Calculator is based on some rules of thumb and rounded figures. Also, the calculator is meant to be a self-help tool for your personal use, and is not intended to offer investment advice. So, make sure to seek personalised advice from our qualified professionals regarding your personal finance issues.
Try these online tools to help make financial decisions that are right for you. Call us at 416-969-8130 if you need help, or would like more detailed information.
Income may not be necessary to qualify. Please call us for a personal consultation.