This calculator helps you determine whether or not you can qualify for a home mortgage based on income and expenses.
Mortgage stress test
To qualify for a mortgage loan at a bank, you will need to pass a “stress test”. You will need to prove you can afford payments at a qualifying interest rate which is typically higher than the actual rate in your mortgage contract.
You need to pass this stress test even if you don’t need mortgage loan insurance.
Credit unions and other lenders that are not federally regulated do not need to use this mortgage stress test.
Banks must use the higher interest rate of either:
- 5.25%
- the interest rate you negotiate with your lender plus 2%
Enter the highest of the two rates above in the field Annual interest rate to determine if you can pass the stress test.
If you already have a mortgage, you’ll need to pass this stress test if you:
- refinance your home
- switch to a new lender, or
- take out a home equity line of credit
FCAC uses a Gross Debt Service (GDS) ratio of 32% and a Total Debt Service (TDS) ratio of 40% in this tool as a guideline. You may still qualify for a mortgage even if your GDS and TDS ratios are slightly higher. However, higher GDS and TDS ratios mean that you are increasing the risk of taking on more debt than you can afford.
Mortgage Required
| Request Amount | $200,000.00 ($250,000.00 - $50,000.00) |
Mortgage Loan Insurance Premium
The minimum down payment required is 5% of the estimated value of the property; therefore, if no down payment specified it is assumed to be 5% of the estimated value of the property.
If your down payment is less than 20%, your mortgage will be considered a high ratio mortgage and you will have to pay a mortgage insurance premium, which protects the mortgage lender in case you can no longer make your mortgage payments. This insurance is usually provided by Canada Mortgage and Housing Corporation (CMHC) or another private insurer (such as Genworth Financial). The amount of the premium will depend on the percentage you can put as a down payment:
I) If you make a down payment of 5% to 9.99%, you will pay a premium of 4.00% of the estimated value of the property.
II) If you make a down payment of 10% to 14.99%, you will pay a premium of 3.10% of the estimated value of the property.
III) If you make a down payment of 15% to 19.99%, you will pay a premium of 2.80% of the estimated value of the property.
NOTE: If your down payment exceeds 20%, the lender may still require you to purchase this insurance. In this case, the premium will be as follows:
A) down payment of 20 to 24.99%: 2.40% of the estimated value of the property.
B) down payment of 25% to 34.99%:1.70 % of the estimated value of the property.
C) down payment of 35% and up: 0.60% of the estimated value of the property. This calculator assumes that no premium is charged when the down payment is over 20%. Check with your mortgage lender.
Normally, the mortgage insurance premium is included as part of your mortgage payment. However, you may be able to pay it as a one-time payment and not have it included in your mortgage payment. Check with your mortgage lender.
This calculator assumes that the mortgage insurance premium is included in your mortgage payment.
| $0.00 ($200,000.00 * 0.00%) |
| Total Mortgage Amount Required | $200,000.00 |
Read on below about GDS (Gross Debt Service) & TDS (Total Debt Service) ratio calculations to find out how your qualification for this mortgage was determined.
We offer this mortgage calculator as a self-help tool for your use. This tool does not replace professional financial advice. We cannot guarantee that this calculator will apply or be accurate in your situation. For example, your mortgage lender may make its calculations in a different way. All calculations are examples only.
Mortgage Qualifier Tool