Annual Household Income (maximum value $500,000)
100,000
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Monthly Expenses
Heating costs (maximum value $2,000)
100
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Property taxes (maximum value $2,000)
300
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Condo fees (maximum value $2,000)
0
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Debt payments (maximum value $2,000)
100
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Mortgage Details
Interest rate (maximum value 25%)
3.50%
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Amortization (maximum value 25 years)
25
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Down payment percent (maximum value 75%)
5.00%
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Down payment
23,895

Results
You qualify for a home with a maximum purchase price of
Maximum purchase price A
Down payment (5.00%) B
Principal mortgage amount C (A-B)
Mortgage default insurance D
Total mortgage amount E (C+D)
Monthly mortgage payment

Gross Debt-Service Ratio (GDSR)
This ratio compares your gross monthly income to your total monthly home ownership costs - mortgage payment, property taxes, heat and 50% of condo fees. The total of these cost is divided by your gross monthly income to arrive at the GDSR. Lenders generally do not want the GDSR to be more than 32%.

Total Debt-Service Ratio (TDSR)
This ratio compares your gross monthly income to your total monthly home ownership costs (mortgage payment, property taxes, heat and 50% of condo fees) plus the total monthly payments on all of your credit cards and loans. The total of these costs is divided by your gross monthly income to arrive at the TDSR. Lenders generally do not want the TDSR to be more than 40%.

Assumptions
Results are based on the lower of the gross debt service ratio (GDSR) and the total debt service ratio (TDSR). The minimum down payment for homes with a purchase price of $0 to $500,000 is 5%. For amounts over $500,000 an additional 10% down payment is required for each dollar over $500,000. For amounts over $1,000,000 a 20% down payment is required. Mortgage default insurance is required for down payments between 5% and 19.99% and the maximum amortization for insured mortgages is 25 years. The calculator assumes that the mortgage interest rate will never vary over the amortization. The actual rate will likely vary over the course of the amortization period and such fluctuations will affect the overall affordability calculation.

 
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