Mortgage Qualification

Question:
How much of a down-payment do I need to qualify?

Answer:
Conventional mortgage - 20% or more of the determined home value.
High – Ratio Mortgage - Also known as an "insured mortgage" (with CMHC, Genworth or Canada Guaranty) for up to 95% of the determined home value.  A fee is added to the mortgage amount.

Question:
How much income do I need to qualify?

Answer:
There are two criteria:

• Gross Debt Service Ratio- Your principal & interest + property taxes + heat annual payments total divided by your gross annual household income. This ratio must not exceed 39% of your gross annual household income.
• Total Debt Service Ratio- To the above totals, add payments on all other debts. This ratio must not exceed 44% of your gross annual household income. (Note: These are industry standards but some lenders may allow these ratios to be higher, usually at a premium price).

Use our handy calculator below to try different scenarios or feel free to call The Mortgage Centre - Island Properties to see how we can help you meet your mortgage needs.

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Calculate based on:   Annual Income   Purchase Price   Total Monthly Payment
Annual Income:		Purchase Price:	$118,430.00
Total Monthly Payment:	$933.33	Cash On Hand:
Interest Rate:		Amortization in Years:	40 years 39 years 38 years 37 years 36 years 35 years 34 years 33 years 32 years 31 years 30 years 29 years 28 years 27 years 26 years 25 years 24 years 23 years 22 years 21 years 20 years 19 years 18 years 17 years 16 years 15 years 14 years 13 years 12 years 11 years 10 years 9 years 8 years 7 years 6 years 5 years 4 years 3 years 2 years 1 years
Annual Property Taxes:		Monthly Heat:
Total Debt Payments: $400.00		Total Closing Costs: $800.00
Monthly Car Payment(s):		CMHC Premium:	0% = $0.00
Credit Card Payment(s):		Other Closing Costs:
Other Loan Payment(s):		Is this a new home?	Check For GST
Condo Fees:
Monthly Payment Breakdown		Principal and Interest Paid
Principal Paid by Year		Use of Cash On Hand