Calculators

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Canadian Mortgage Qualifier

The first step in buying a house is determining your budget. This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the payment schedule button to see a complete amortization schedule of your mortgage payments.

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Definitions
Annual income Your annual income. For married couples this is your total combined annual income.
Purchase price The price of the home you wish to purchase. This is the actual price you pay, not including any closing costs.
Total monthly payment Total monthly payment that you can qualify for. This is the total of principal, interest, taxes and heat paid each month. Often called PITH.
Cash on hand Cash you have for the down payment and all closing costs.
Interest rate The current interest rate you can receive on your mortgage.
Term in years The number of years over which you will repay this loan.
Property tax rate Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.
Monthly car payment(s) Total monthly payment for your car loan(s).
Credit card payments Total monthly minimum payments for your credit cards.
Other loan payments Any other installment loan payments, such as student loans or unsecured loans.
Total closing costs Total up front costs to close your loan. This is the total of your CMHC premium, transfer tax, GST Tax and other closing costs.
Other closing costs Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other misc. fees paid.
CMHC Premium Mortgage insurance is paid to the Canadian Mortgage and Housing Corporation (CMHC). This includes all loans secured with less than 25% down and for many loans with as much as 35% down. The CMHC premium is calculated as:

CMHC Insurance Premium Rates:
Loan to Value Ratio Rate (as a % of loan)
Up to and including 65% (25% to 35% down payment)
0.05%
Up to and including 75% (20% to 25% down payment)
0.75%
Up to and including 80% (15% to 20% down payment)
1.25%
Up to and including 85% (10% to 15% down payment)
2.00%
Up to and including 90% (5% to 10% down payment)
2.50%
Up to and including 95% (5% down payment)
3.75%

Monthly PI payment Monthly principal and interest payment.
Total for down payment Total funds remaining, after closing costs and taxes, for down payment.
Limit down payment to 35% Limit down payment to 35% of the purchase price. Even if you have more cash on hand than required for closing costs and a 35% down payment.
Show schedule by month Display the payment schedule by month when you press the Payment Schedule button.
Show schedule by year Display the payment schedule by year when you press the Payment Schedule button.
Total debt percent of annual income Not shown. This is the percent of your annual income your financial institution allows you to use for installment payments debt. This includes car payments, credit card payments, other loan payments and your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 40%.
PITH percent of annual income Not shown. This is the percent of your annual income your financial institution allows you to use for your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 32%.
Qualify amount Shown as "Total monthly payment." This is the total amount you qualify for per month. This amount is the total of "Principal, Interest, Tax and Heat" for your home.
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