Rinehart Realty
(519) 601-6199
Free Home Evaluation

Affordability calculator

What You CanActually Afford

Income, other debts, what you have saved and the rate. It uses the 39% and 44% ratios lenders work to, with London property tax and heat taken off the housing budget first.

What you can afford

The way a lender works it out, in the order they work it out.

Everybody who will be on the mortgage, added together.

The 44% a lender allows for housing and debtWhichever of the two ratios bites first is your real ceiling$4,033 a month

Car payments, loans, and the minimum on any card or line of credit. Not rent, groceries or childcare.

Property tax and heatA lender takes these off the housing budget before the mortgage, so this calculator does too$752 a month
Left for the mortgage$2,681 a month

You could look up to

$535,478

Your other debts are the limit, not your income. Clearing one moves this figure more than saving does.

What this assumes

The two ratios every Canadian lender works to. GDS is housing against income and caps at 39%. TDS is housing plus every other debt payment and caps at 44%. Whichever bites first is the ceiling, and for anybody with a car payment it is almost always TDS.

London property tax is taken at roughly 1.35% of the price a year and heat at $150 a month. Both come out of the housing budget before the mortgage does, because that is the order a lender works in.

A 25 year amortization, and the stress test is not in this. A lender qualifies you at the higher of your rate plus two points or 5.25%, so treat the figure above as the optimistic end of the range and expect a pre-approval to come in under it.

See what that buys in London

Tell us where you would want to be and we will send you what is on the board in your range, and what comes up after that.

We send your figures with it so nobody has to ask you for them twice. No obligation, and we do not pass your details on.

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