Affordability
Can I afford this home?
The way a lender sizes it: 39% of income for housing, 44% for all debts, tested at a higher rate than you will pay. Your answer appears as you type. The detailed report comes by email.
Maximum a lender would likely approve
$780,000
Limited by your GDS. Payment at your rate about $3,509 a month, before tax and utilities.
Comfortable price, 15% under the limit
$660,000
Stress-test rate applied6.29%
Mortgage at the maximum$630,000 + $17,640 CMHC
Loan-to-value81% · insured
- Under 20% down, so the mortgage is insured. The premium of about $17,640 is added to the loan, not paid in cash.
- Tested at 6.29%, the federal stress test, even though your payment is based on 4.29%.
An estimate using the federal stress test and the 39% / 44% debt service limits most lenders apply. A pre-approval from a lender or broker is the real number; Maryam can introduce one.