When searching for a mortgage, the first step is to figure out how much you can afford. The affordability calculator helps you understand your budget range.
For personalized advice on your affordability, get a quote and a mortgage expert will contact you.
Why use an affordability calculator?
Determining your budget is an important step before beginning your house search. Mortgage Maestro’s affordability calculator can help you understand your borrowing limit by providing some simple information. Our tools are designed to help you find the perfect mortgage solution and make the approval process easier. To get an even more accurate estimate of your affordability, get a quote and one of our experts can help you find a mortgage that fits comfortably within your budget.
How the affordability calculator works
Mortgage Maestro’s calculators give you the freedom to test different scenarios to support your decision-making process. To determine the best mortgage solution, you will need the following information:
- Total Household Income: The combined annual income of all the mortgage applicants.
- Purchase Price: The expected property price.
- Down payment: The planned amount that will be paid upon purchase of the property.
Frequently asked questions about home purchase affordability
Is the affordability calculator accurate?
The calculator can help you estimate your borrowing limit. The actual amount may vary based on your credit history, income status, planned down payment and more. Talk to one of our experts to get a detailed breakdown of rates and options available for you.
What is the minimum down payment?
The minimum down payment to purchase a property in Canada under $500,000 is 5%. For properties priced between $500,000 and $999,999 the required down payment is 5% of the first $500,000 of the purchase price and 10% for the remaining portion of the purchase price. For properties priced over $1 Million, the minimum down payment is 20%. However, homeowners need to purchase mortgage insurance if they are making less than a 20% down payment.
How much should I borrow?
Your borrowing limit is dependent on many factors such as your monthly household income, credit history, existing debt obligations, assets and more. Using the calculator above can help you get an estimate of how much mortgage you can afford. If you’d like a more accurate estimate, get a quote and one of our mortgage experts can help you find an amount that fits comfortably within your price range.
Are there any other costs associated with the mortgages?
There will be some additional costs for an appraisal (if required). Your lawyer may charge a separate fee for processing your mortgage paperwork. Depending on the home’s purchase price there may be an additional cost associated with property, land transfer tax.
What does mortgage affordability mean?
The term “mortgage affordability” relates to the practice of evaluating various home loans to ensure you can comfortably make payments while meeting other financial obligations (i.e. paying off any other debt you have).