Property Information
The number of years and months over which you will repay this loan. The most common amortization period is 25 years. Not to be confused with the term of your loan, which is the duration of the loan agreement you signed with your financial institution and that has to be renewed regularly. Terms are generally for 1 to 10 years.
By choosing an accelerated payment frequency, you can reduce your amortization period and save thousands of dollars in interest in the long run. For example, the accelerated bi-weekly payment allows you to pay half of your monthly payment every two weeks. You will therefore make 26 payments a year, the equivalent of one extra monthly payment a year.
The number of term years.
Your Income and Anticipated Expenses
Note: If your down payment is less than 20%, you will have to qualify for a mortgage based on the 5 year fixed rate, even if you are planning to choose a shorter term with a lower interest rate.
You will likely be approved for a mortgage amount of $200,000.00 since your GDS ratio (30.26 %) does not exceed 32.00 % and your TDS ratio (39.26 %) does not exceed 40.00 %.
Mortgage Required
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This is the actual mortgage amount you are requesting - calculated by subtracting down payment (if any) from the value of the property you specified.
| Mortgage Amount Requested: | $200,000.00 ($250,000.00 - $50,000.00) |
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The minimum down payment required is 5% of the estimated value of the property; therefore, if no down payment specified it is assumed to be 5% of the estimated value of the property.
If your down payment is less than 20%, your mortgage will be considered a high ratio mortgage and you will have to pay a mortgage insurance premium, which protects the mortgage lender in case you can no longer make your mortgage payments. This insurance is usually provided by Canada Mortgage and Housing Corporation (CMHC) or another private insurer (such as Genworth Financial). The amount of the premium will depend on the percentage you can put as a down payment:
I) If you make a down payment of 5% to 9.99%, you will pay a premium of 2.75% of the estimated value of the property.
II) If you make a down payment of 10% to 14.99%, you will pay a premium of 2% of the estimated value of the property.
III) If you make a down payment of 15% to 19.99%, you will pay a premium of 1.75% of the estimated value of the property.
NOTE: If your down payment exceeds 20%, the lender may still require you to purchase this insurance. In this case, the premium will be as follows:
A) down payment of 20 to 24.99%: 1.0% of the estimated value of the property.
B) down payment of 25% to 34.99%: 0.65% of the estimated value of the property.
C) down payment of 35% and up: 0.5% of the estimated value of the property. This calculator assumes that no premium is charged when the down payment is over 20%. Check with your mortgage lender.
Normally, the mortgage insurance premium is included as part of your mortgage payment. However, you may be able to pay it as a one-time payment and not have it included in your mortgage payment. Check with your mortgage lender.
This calculator assumes that the mortgage insurance premium is included in your mortgage payment.
| Mortgage Loan Insurance Premium: | $0.00 ($200,000.00 * 0.00 %) |
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This is the total mortgage amount.
| Total Mortgage Amount Required: | $200,000.00 |
Read on below about GDS (Gross Debt Service) & TDS (Total Debt Service) ratio calculations to find out how your qualification for this mortgage was determined.
GDS Ratio Calculation
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This is the amount of mortgage you would pay per period.
| Mortgage Payment: | $1,163.21/month |
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Calculated heating cost per month.
| Heating Cost: | + $150.00/month |
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Calculated property taxes per month.
| Property Taxes: | + $200.00/month |
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Calculated GDS Ratio Cost per month: GDS Ratio Cost per month = Mortgage Payment per month + Heating Cost per month + Property Taxes per month.
| GDS Ratio Cost: | = $1,513.21/month |
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Calculated Gross Income per month.
| Gross Income: | ÷ $5,000.00/month |
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This is the calculated GDS Ratio based on the values you specified: GDS Ratio Cost per month ÷ Gross Income per month.
Please note that the GDS Ration must be under 32% to be approved for the mortgage.
| GDS Ratio: | = 30.26 %  |
TDS Ratio Calculation
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Calculated GDS Ratio Cost per month: GDS Ratio Cost per month = Mortgage Payment per month + Heating Cost per month + Property Taxes per month.
| GDS Ratio Cost: | $1,513.21/month |
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Calculated credit card/line of credit payments per month.
| Credit Card/Line of Credit Payments: | + $100.00/month |
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Calculated car related payments per month.
| Car Payments: | + $350.00/month |
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Calculated any other debt related payments per month.
| Other Debt Payments: | + $0.00/month |
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Calculated TDS Ratio Cost per month: TDS Ratio Cost per month = GDS Ratio Cost per month + Credit Card/line of credit payments + Car payments per month + Other debt payments per month.
| TDS Ratio Cost: | = $1,963.21/month |
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Calculated Gross Income per month.
| Gross Income: | ÷ $5,000.00/month |
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This is the calculated TDS Ratio based on the values you specified: TDS Ratio Cost per month ÷ Gross Income per month.
Please note that the TDS Ration must be under 40% to be approved for the mortgage.
| TDS Ratio: | = 39.26 % |
Based on your GDS and TDS ratios, you could qualify for a mortgage with a maximum amount of $206,325.60, or a home with a maximum cost of $257,907.01 - assuming that your down payment would be the same percentage as what you entered in the calculator (20.00 %).
Moreover, based on values you entered a summary report can be produced. The report includes all your input values, the qualification results, payment schedule as well as a list of other things to consider before applying for a mortgage. You may print the report and bring it with you when you visit the mortgage lender.
