This easy-to-use mortgage calculator will help you estimate the maximum mortgage you can afford. The tool will calculate the maximum house price you can afford, the maximum mortgage amount you can borrow, and your monthly mortgage payments.
Mortgage Calculator — How Much Can You Afford?
The shortest answer to that question is: it depends on a number of factors. The most important are your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.
This calculation is based on two simple rules that lenders use to determine how much of a mortgage you can afford.
The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees.
Secondly, your entire monthly debt load should not be any more than 40% of your gross monthly income. This includes housing costs, and other debts such as car payments, personal loans, and credit card payments.
Calculating Mortgage Payments – Using TD Canada mortgage calculator.
Use this calculator to learn how you can save thousands
of dollars in interest costs over your repayment period.