Mortgage Affordability Calculator
Before you start to look for your dream house, you need to know how much house you can afford. There is a lot to consider when it comes to figuring out how much of a mortgage you qualify for. In addition to having a steady income, banks and lending institutions look at credit history, job history, and collateral.
Basically, banks and lenders want as much financial information as possible to determine your risk level and whether or not you have the means to repay the mortgage.
It’s important to get approved for a mortgage before you begin house hunting. It means you can put a serious offer in on a property right away. Waiting to get approved for a mortgage after you find a home you love could mean losing it—especially in this competitive environment.
In addition to figuring out how much your down payment is going to be, you also need to figure in so-called hidden costs, such as closing costs (legal fees), provincial and municipal land transfer taxes, and insurance.