Quality not Quantity
Different lenders have different guidelines and income ratios that limit the amount of mortgage they are able to lend you. For most conventional mortgages (mortgage is less than 80% of the house value) your mortgage, property tax and an amount for heating otherwise called your GDS (gross debt service) should not exceed 32% of your gross (before tax) income and your current debt load (loans, credit cards) called your TDS (total debt service) with the house should not exceed 42%.
With a high ratio insured mortgage you may use 35% (GDS) and 42% (TDS) of your income or if your credit rating beacon/FICO score is greater than 680 you may go as high as 44% for your total debt load. These guidelines are in place to protect you and the lender from your financial situation being overextended with too much debt. It's the quality not the quantity of your mortgage that we should be most concerned with. Would you be happier with a huge house and not being able to enjoy life because your payments or having a smaller home (along with the payment) and the ability to... say... go on a vacation once a year or enjoy more nights out on the town?
The calculator below is an estimate of your maximum mortgage payment. Different lenders will use or not use some types of income (eg. child tax credit or non-court ordered child support). If you are unsure of part or all of your income, rather than guess, a quick call or email will give you the answer.
This is the maximum monthly mortgage payment you are allowed from a conventional lender based on 44% of your gross income. This calculator is a guide and while considered accurate, the final qualifacation is calculated by the lender.
Contact Info
Phone:
250-334-1683
Fax: 250-334-1834
Toll Free: 1-866-989-6414
E-mail: rickbossom@yourmortgageinfo.ca
Want more info - go to the contact page
Testimonials
I read an advert in the local paper several weeks ago regarding a mortgage. I phoned the number straightaway and spoke to Rick Bossom. Since then I have not looked back. I was particularly impressed with the way in which Rick worked with me. He seemed to take all the stress by walking me through each step and helped me obtain all the written details I needed. He was always available either by phone or email. Thank you for helping me obtain such a smooth transaction. I will definitely be recommending your services to all the people I know.M.T.
Mortgage Tip
- Knowing when to take a variable rate mortgage or a fixed rate mortgage is personal choice. It's up to your ability to take the ups and downs of the credit markets or if you enjoy knowing what your interest rate will be for a longer period of time. Studies do show that approximately 80% of the time you would pay less interest with a variable than a fixed rate mortgage, but again it's personal choice.