Mortgage Information

Mortgage Affordability Calculator

Monthly Mortgage Payment Calculator

Instructions:

Fill in the forms below. Click the calculate button to do the math for you. Please do not skip parts as some sections rely on information from previous parts for doing calculations. (Please do not use commas when entering values.)

Part I - Your Available Assets
Use the chart below to total your available assets for downpayment


Cashable Assets	Example	Yours
Cash	$3000	$
Stocks	$7000	$
Mutual Funds	$30000	$
CSBs and Other	$3000	$
Term Deposits(GICs)	$10000	$
RRSPs	$7000	$
Total Cashable Assets	$60000	$

Part II - Your House Buying Expenses
In addition to your purchasing price, you will incur other expenses. For example, when you move in, you will want to decorate your new home. Plan ahead for this and include your immediate home renovations in your list of expenses below.


Home Buying Expenses	Example	Yours
GST	$0	$
Property Purchase Tax(BC)	$0	$
Legal Fees	$1000	$
Mortgage Setup Fees	$150	$
Land Transfer Tax	$2000	$
Moving Expenses	$1500	$
Insurance Premiums (fire,mortgage,etc)	$1350	$
Immediate Home Renovations (furnishings,misc,etc)	$4000	$
Total Expenses	$10000	$

Part III - Income
When calculating your affordable mortgage the first step is to total your monthly household income.


Monthly Income	Example	Yours
Your Gross Monthly Income	$2500	$
Spouse's Monthly Income	$2000	$
Other Regular Income	$0	$
Total Household Income	$4500	$

Part IV - Gross Debt Service
Gross Debt Service (GDS) is the total of your monthly mortgage payments (principal, interest and taxes) relative to your monthly household income. Your GDS maximum could range from 25% to 30% for a conventional mortgage. For a high ratio mortgage, your GDS can be a maximum of 32% but you must also account for heating costs.


GDS Ratio Calculations	Example	Yours
30% of Total Monthly Household Income	$1350	$
Deduct: Estimated Monthly Property Tax	$150	$
Half Monthly Condominium Fees	$0	$
Maximum Monthly Mortgage Payments (based on GDS)	$1200	$

Part V - Total Debt Service
Total Debt Service (TDS) takes into consideration all other debts and loans in addition to your monthly mortgage payment (principal, interest and taxes). Your maximum TDS ratio could range from 35% to 40% for a conventional mortgage. For a high ratio mortgage, your TDS can be a maximum of 42%, including heating costs.


TDS Ratio Calculations	Example	Yours
40% of Total Monthly Household Income	$1800	$
Deduct: Monthly Credit Card Payments	$50	$
Car Loan Payments	$250	$
Other	$100	$
Estimated Monthly Property Tax	$150	$
Half Monthly Condominium Fees	$0	$
Maximum Monthly Mortgage Payment (based on TDS)	$1250	$

Part VI - Calculating Your Affordable Mortgage
Use the lower of your GDS or TDS calculations to determine the total mortgage amount you can afford to maintain.


Your Affordable Mortgage	Example	Yours
Lower of GDS or TDS figure	$1200	$
Divide by: Current Approx. Interest Rate	8.5%
Your Affordable Mortgage	$150867	$

Part VII - Your Total Purchase Price
By combining your assets with your affordable mortgage and deducting your expenses, you can determine your total purchase price.


Your Total Purchase Price	Example	Yours
Your Affordable Mortgage	$150867	$
Your Cashable Assets	$60000	$
Minus: Your Expenses	$10000	$
Total Purchase Price	$200867	$