Qualification Summary
| Required Mortgage | |
| Maximum Mortgage | |
Property Details
| Estimated Value of the Property | $250,000.00 |
| Down Payment | - $50,000.00
OR 20.00% |
| Mortgage Amount Requested | = $200,000.00 |
| Mortgage Loan Insurance Premium | + $0.00
OR 0.00% |
| Total Mortgage Amount Required | = $200,000.00 |
Mortgage Details
| Total Mortgage Amount Required | $200,000.00 |
| Interest Rate | 5.25% |
| Amortization Period | 25 years |
| Monthly Mortgage Payment | $1,191.84 A
Amount "A" will be used in GDS Cost calculation. |
A mortgage lender will use the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to verify whether you would qualify for the mortgage requested. Calculation of these ratios are explained below.
FCAC uses a Gross Debt Service (GDS) ratio of 39% and a Total Debt Service (TDS) ratio of 44% 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.
Gross Debt Service (GDS) Cost
| Heating Cost | + $150.00/month |
| Property Taxes | + $200.00/month |
| Mortgage Payment | + A ($1,191.84/month) |
| Total Gross Debt Service (GDS) Cost | = $1,541.84/month B
Amount "B" will be used in GDS Ratio, TDS Cost and TDS Ratio calculations. |
Your Gross Debt Service (GDS) ratio is the ratio of the essential payments you must make for your home (including your mortgage payment) to your gross income. In order to qualify for a mortgage, your GDS ratio must normally not exceed 39%.
Debt Service (TDS) Cost
Credit Card / Line
of Credit Payments | + $100.00/month |
| Car Payments | + $350.00/month |
| Other Debt Payments | + $0.00/month |
| GDS Cost | + B ($1,541.84/month) |
| Total Debt Service (TDS) Cost | = $1,991.84/month C
Amount "C" will be used in TDS Ratio calculation. |
Your Total Debt Service (TDS) ratio is the ratio of all of your household debts (including your mortgage payment) to your gross income. In order to qualify for a mortgage, your TDS ratio must normally not exceed 44%.
GDS and TDS Ratio Calculations
| Your Gross Income | $5,000.00/month D |
| Your GDS Ratio | B ÷ D = $1,541.84/month ÷ $5,000.00/month = 30.84%  |
| Your TDS Ratio | C ÷ D = $1,991.84/month ÷ $5,000.00/month = 39.84% |
You may want to check that your GDS ratio is not too close to 39% and your TDS ratio is not too close to 44%. If they are, you will likely become overextended if you incur more debt or other financial obligations.
Calculation Summary
| Category | Term | Amortization Period |
| Number of Payments | 60 | 300 |
| Mortgage Payment | $1,191.84 | $1,191.84 |
| Principal Payments | $22,297.25 | $200,000.00 |
| Interest Payments | $49,212.93 | $157,550.81 |
| Total Cost | $71,510.18 | $357,550.81 |
Below you will find examples of future expenses that might affect your ability to make your mortgage payments.
Have You Thought About All Your Existing and Potential Financial Obligations and Your Future Credit Needs?
Existing and Potential Financial Obligations
Make sure you have considered all existing and potential financial obligations, such as:
- Amounts you pay in alimony or child support
- Other mortgage amounts you may be paying on a secondary home or cottage
- Amounts you are putting aside for your children's education
- Child care fees
If you have any of these financial obligations that you have not entered into the mortgage qualifier calculator, go back and include them as part of "Other Debt Payments".
Future Credit Needs
Here is a list of potential future expenses that could affect your financial situation and perhaps your ability to make your mortgage payments:
- Replacing your existing car or getting a second car
- Buying new furniture
- Taking a trip
- Doing renovations
If you expect to be in any of these situations in the near future, you should recalculate the mortgage you can qualify for to make the model more realistic. Enter these future credit needs in "Other Debt Payments".
Things to Think About When Applying for a Mortgage
- Keep extra money on hand to cover closing costs, lawyers' fees, tax adjustments, land transfer taxes, movers, etc.
- The mortgage lender will want to verify your credit file before approving your application for a mortgage.
- Expect the mortgage lender to request proof of your income.
- If you are transferring your mortgage from your existing home to a new home, you may have to re-qualify with the lender.
- If you have chosen a mortgage with a term of less than 3 years, some mortgage lenders will approve you using an interest rate equivalent to at least their 3-year term.
- If interest rates have risen by the time you renew your mortgage, will you still be able to make your mortgage payments?
- If you have credit cards, lines of credit or other revolving credit, financial institutions will sometimes use the limits on these products to determine what minimum payment you need to make in the TDS ratio calculation. You should enter these in the Credit Card/Line of Credit Payments field, even though you might pay on time and in full each month. If you have credit cards or lines of credit you don't use, you should cancel them or lower the credit limit.
To find out about your rights and responsibilities when applying for a mortgage, contact the Financial Consumer Agency of Canada (FCAC), toll-free, at 1-866-461-3222.
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