Mortgage Affordability Calculator

When searching for a new home, the first step is to figure out how much you can afford. Smarthomeloan.ca takes the most important factors like your income and expenses and determines the maximum purchase price that you can qualify for.

Calculate your maximum affordability

Your gross income before-tax, including any bonuses and supplementary income.

If you don't know these costs, leave the fields blank and we will estimate for you.

Enter debt payments if applicable. If you have none, you can leave blank.

Build your personalized mortgage scenario to determine your mortgage payment

Home Price
Down payment
Mortgage insurance
Total Mortgage Required equals $-
Amortization period  
 
STEP 2
Choose an amortization period.
Mortgage rate  
 
 STEP 3
Choose a mortgage rate to calculate the corresponding payment.
Select rate
Mortgage type    

Total Mortgage Payment

 $-
Get rate
 
Land Transfer Tax: $-
 
STEP 4
If necessary, update your profile to calculate land transfer tax.
Profile
Provincial: Provincial Land transfer tax (LTT), typically calculated as a percentage of the purchase price of a home, is required when purchasing a home in Canada. All provinces have a LTT, and the amount varies in each province.
 
Municipal: Municipal Some municipalities, like Toronto, levy an additional LTT, which is similarly calculated as a percentage of the purchase price of a home.
 
Rebate: Rebate If you are a first-time home buyer in British Columbia or Ontario, you will be eligible for LTT rebates, equal to the value of the LTT up to a maximum amount set by the province.
 
 
Explore the drop-downs to better understand your mortgage choice.

Cash Needed
How much extra cash will I need when my house closes?

When you purchase a house, there are a number of costs you'll need to put cash aside for in addition to your down payment. These costs depend on a number of factors including things like what kind of home you are buying (i.e. house vs. condo) and where the home is located.

Our tool will help you calculate these costs, so you know how much you'll need to save.

Required Cash Expenditures

  • Down payment $-
  • PST on mortgage insurance $-
  • Land Transfer Tax $-
  • Lawyer fees $-
  • Title insurance $-
  • Estoppel certificate fee $-
  • Total Cash Required $-

Other Cash Considerations

  • Home inspection fees $300 - $500
  • Appraisal fees $300

Monthly Expenses
Can I afford my monthly expenses & mortgage payments?

Expenses

  • Mortgage payment $-
  • Property Tax
  • Monthly Debt Payments
  • Utilities
  • Condo Fees
  • Property insurance
  • Phone
  • Cable
  • Internet
  • Total $-

Interest Rate Risk
What would my payment be at higher interest rates?

When determining the size of home you can afford, it's important to look at the long term horizon. The mortgage rate you pay today could be substantially different from the mortgage rates available when the time comes to renew your mortgage.

The calculation below shows how much of your mortgage principal will be left at the end of the term.

Mortgage Amount

  • Mortgage amount today $-
  • Less: Principal paid off over term $-
  • Mortgage remaining at end of term: $-

Using this amount, below we calculate the corresponding mortgage payments at a variety of interest rates:

Purchase interest rate Payment
Selected Scenario
Selected Rate $-
Average 5-year Fixed Rates (2000 - 2010) 3.89% $-
Average 5-year Fixed Rates (1990 - 2000) 7.23% $-
Average 5-year Fixed Rates (1980 - 1990) 11.92% $-

Below is a graph that displays the approximate values of competitive 5-year fixed mortgage rates since 2006.

5-year Fixed Mortgage Rates

Amortization Schedule
What do my payments look like over time?

Year Total Paid Principal Paid Interest Paid Balance

Select rate

Provider Rate Select
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Custom rate Select
Affordability Calculator

What is Affordability Calculator

An affordability calculator is a tool that helps you estimate how much home you can afford based on your income, expenses, and other financial information. Using an affordability calculator can help you determine a realistic budget for your home purchase, and can help you avoid taking on more debt than you can handle.

When using an affordability calculator, you'll typically be asked to enter information such as your gross annual income, available down payment, monthly debts, and other expenses. The calculator will then provide an estimate of how much home you can afford based on your financial situation.

One of the benefits of using an affordability calculator is that it can help you determine the price range of house you can buy. Maximum loan range from 80% to 95% of down payment, The larger your down payment the less you'll need to borrow, which can help you save money on interest over the life of the loan.

It's important to keep in mind that an affordability calculator is only an estimate, and the actual amount you can afford may vary based on factors such as your credit score, debt-to-income ratio, and other financial considerations. Additionally, you should consider all of your monthly expenses, including utilities, insurance, and property taxes, when determining your homebuying budget.

If you're considering buying a home, it's a good idea to use an affordability calculator to get a sense of what you can afford. This can help you make informed decisions about your home purchase and ensure that you're financially prepared for homeownership.

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