How Much Mortgage Can I Afford in Ontario?

Your estimated ratios sit close to commonly used qualification guidelines. Small changes to the mortgage amount, other monthly obligations or the property's carrying costs could affect the result. Actual qualification depends on the lender, mortgage type, credit profile, income verification and other factors.

Canadian qualification rules generally require your mortgage application to be assessed at a qualifying rate that is higher than the rate you would actually pay. The qualifying payment shown above is the payment used in that assessment, not the payment you would make.

Testing your file at the higher rate is a way of checking whether the mortgage would still be manageable if rates were higher at renewal. Actual requirements vary by lender, mortgage type and whether the mortgage is insured.

Based on the information entered, your estimated maximum purchase price is approximately $667,000 with a mortgage of about $600,042. A full mortgage assessment would still be required to verify income, credit, debts, property details and lender requirements.

In this scenario your other monthly debt obligations are the main limiting factor. Reducing or restructuring certain debts may change the overall picture.

Your down payment is below 20% of the purchase price, so default mortgage insurance would generally apply. The premium has been added to the mortgage amount shown; Ontario's 8% sales tax on the premium ($1,443) can't be added to the mortgage and is paid in cash at closing. With less than 20% down, the maximum amortization is 25 years unless you're a first-time buyer or buying a newly built home.

Your estimated ratios sit close to commonly used qualification guidelines. Small changes to the mortgage amount, other monthly obligations or the property's carrying costs could affect the result. Actual qualification depends on the lender, mortgage type, credit profile, income verification and other factors.