When searching for a new home, the first step is to figure out how much mortgage you can afford. There are several factors to calculate this, but the mortgage affordability calculator takes all of them into account automatically and will show you the maximum purchase price that you can qualify for.
How much you can afford to spend on a home in Canada is most determined by how much you can borrow from a mortgage provider. That is unless you have enough cash to purchase a property outright, which is unlikely. Use the above mortgage affordability calculator above to figure out how much you can afford to borrow, based on your current situation.
To use the mortgage affordability calculator, simply enter you and your partner’s income (or your co-applicant’s income), as well as your living costs and debt payments. The calculator can estimate your living expenses if you don’t know them.
With these numbers, you’ll be able to calculate how much you can afford to borrow. You can change your amortization period and mortgage rate, to see how that would affect your mortgage affordability and your monthly payments.