Many people who are thinking of buying a home will wonder if they will be able to purchase the home of their dreams with their current salary. They may then turn to a local mortgage qualifier to determine if they can buy a home with their current income. It should also be noted that every person’s situation is different.
Some people may have more stringent budgets due to financial dues and substantial expenses, while others may have a large amount of capital to work with from the beginning. Here, we will help you determine if you can afford a mortgage on your salary using a mortgage qualifier in Toronto.
The First Step
When you decide to buy a home, many steps are involved, and it is a lengthy process. The first thing you should do is determine how much capital you can borrow for your mortgage. The goal is to avoid being in the red as much as possible. You will want to find an amount that fits within your unique budgetary limits.
How the Mortgage Affordability Calculator Works
Fortunately, there are many online tools that you can take advantage of in order to quickly determine if you can afford a mortgage on your current salary, without actually having to sign any papers or make a real legal commitment.
To use a mortgage calculator, you will be asked to fill in certain details, such as the amount of outstanding debts, such as loans, credit card and/or car payments, your yearly income before taxes, and what your monthly living expenses are at the moment; which may include heating costs, condo fees, and property taxes. If a co-applicant is involved in the procurement of the mortgage, then the calculator will also ask you to provide their annual income before taxes as well.
You will also be asked if you would prefer to buy a condo or a house, as well as what province you currently reside in or wish to move to. You may also be asked if this is your first home purchase, and the system will also ask you what amortization period you are looking for, as well as the mortgage rate and type you are interested in.
After you have entered all of your details, the system will calculate a mortgage amount that is tailored-made for you. However, please note that the calculator is just a simulation, so we would suggest that you speak with a qualified mortgage professional in order to discuss your unique financial needs in person.
To learn more about how to find out if you qualify for a mortgage, call Northwood Mortgages at 866-307-0747 or contact us here.