Mortgage Affordability Calculator

Mortgage Affordability

This calculator assumes:

The mortgage payment does not include monthly property taxes.

That you and your co-applicant can qualify for a CMHC mortgage on the basis of annual income and credit ratings.

That you are looking to purchase a house with a minimum
down payment (5%).

Mortgage Details

Maximum Monthly Mortgage Payment not including Property taxes
Interest Rate (per annum)	%
Amortization Period (in years)	Years

Results

Net Mortgage Amount
CMHC Premium (with a 5% down payment)
Maximum Affordable Property Value
Down Payment Required (5% of Maximum Affordable Property Value)
Eligible Mortgage Amount (Net Mortgage Amount plus CMHC Premium)

Definitions

Maximum Monthly Mortgage Payment:
This is the amount the borrower can afford to spend every month for making mortgage payments. This amount does not include the property taxes.

Interest Rate (per annum):
Annual percentage of interest that applies to your mortgage.

Amortization (in Years):
Amortization describes the time over which a mortgage is to be paid, assuming equal payments. This is longer than the Bankâ€™s term. The most common amortization period is 25 years. For example you may set the interest rate over a 5 year term. However, it takes an amortization period of 25 years to reduce the balance of the mortgage to 0. As you increase your amortization, your monthly payments will decrease, but the total interest paid increases.

CMHC Premium:
Canada Mortgage and Housing Corporation is a government organization. It helps Canadians purchase homes with a minimal down payment (as small as 5% of the purchase price). For this, CMHC charges the borrower an insurance premium which can be added to the mortgage. The premium will vary depending on the amount of down payment the borrower as.

Eligible Mortgage Amount:
This is an approximation of how much of a mortgage you can qualify for based upon the information you entered. No other information was taken into account. We also assumed that you and your co-applicant will qualify with CMHC with credit and income requirements.

Mortgage Affordability Calculator

EXPLORE

Others