What can I afford Step 1 of 5
What's your household income?
Yearly, before tax, for everyone on the mortgage.
Any monthly debt payments?
Car loans, credit cards, lines of credit, student loans. Not your rent.
How much have you saved for a down payment?
Include gifts from family and your FHSA or RRSP if you'll use them.
A few last numbers
We've filled in typical London figures. Adjust them if you know yours.
Turn this into a real pre-approval
A lender confirms the number, holds a rate for you and makes your offer stronger. We'll connect you with a London broker who answers the phone, and send homes in this range.
Or call or text 519-670-3027Thanks, we're on it
Mackenzie will be in touch shortly, usually within the hour. Need it sooner? Call or text 519-670-3027.
Estimate only. Uses a 39% gross and 44% total debt service limit at the stress test rate. Lenders also look at credit, employment and the property. Not financial advice or a mortgage approval.
The rules behind the number
- 1The stress test
Lenders qualify you at the higher of 5.25% or your rate plus 2%. Your real payment is lower, but the limit comes from the test rate.
- 2Two debt limits
Housing costs up to 39% of gross income, and all debts up to 44%. Whichever is tighter sets your maximum.
- 3Down payment rules
If your savings don't cover the minimum down payment for a higher price, that becomes the limit, and we show it.
Questions people ask
It depends on income, debts, down payment and the stress test. As a rough guide, lenders cap your housing costs at about 39% of gross income and all debts at about 44%. This calculator applies both.
You have to qualify at the higher of 5.25% or your contract rate plus 2%, even if your actual rate is lower. It is the main reason pre-approvals come in below what people expect.
5% of the first $500,000, 10% of the portion up to $1,500,000, and 20% at $1,500,000 or more. Below 20% you also pay mortgage default insurance, which is added to the loan.
No. Budget for land transfer tax, legal fees, title insurance, an inspection and moving, roughly 1.5% of the price plus land transfer tax. Our land transfer tax calculator shows that part.
Yes. A pre-approval confirms your real number, can hold a rate for up to 120 days and makes your offer stronger.