If you’re considering buying a home in Canada, understanding how much mortgage you can afford is crucial. Cannect offers tools and guidance to help you determine your mortgage affordability based on real-time financial information.

What is Mortgage Affordability

Mortgage affordability is the measure of how much mortgage you can comfortably manage based on your income, debts, and financial situation. It reflects the balance between what you earn and your housing costs, ensuring your mortgage payments fit within your budget. Understanding mortgage affordability helps you make smart, stress-free decisions when buying a home.

What Factors Determine What Mortgage You Can Afford?

Mortgage affordability is based on several key factors:

Your Income

Lenders typically allow 32–39% of your gross monthly income to go toward housing costs. This includes your mortgage payment, property taxes, and heating costs.

Your Debt

Your Total Debt Service Ratio (TDSR) includes all debts—credit cards, loans, car payments—along with your mortgage. Most lenders prefer this to stay under 44%.

Your Down Payment

A larger down payment lowers your monthly mortgage, makes you more attractive to lenders, and helps you avoid CMHC insurance if you put down 20% or more.

Your Credit Score

A stronger credit score gets you access to better rates and more flexibility when it comes to qualifying.

Utilizing Mortgage Calculators

Cannect offers a suite of mortgage calculators to assist you in planning your home purchase

• Purchase Payment Calculator: Helps you estimate your monthly mortgage payments based on the purchase price, down payment, interest rate, and amortization period.
  
• Refinance Payment Calculator: Allows you to see potential savings if you’re considering refinancing your current mortgage.
  
• Renewal Payment Calculator: Assists in evaluating your options when renewing your mortgage term.

These tools are designed to provide you with a clearer picture of your financial commitments and help you make informed decisions.

Personalized Assistance with Cannect

Beyond calculators, Cannect offers personalized assistance to cater to your unique financial situation. Whether you’re self-employed, carrying significant debt, or have non-traditional income sources, Cannect works with alternative lenders to find solutions that fit your needs. They also provide home equity loan options to consolidate debt and potentially increase your mortgage affordability.

Affordability Calculator

Cannect offers an Affordability Calculator. In that, input your financial details to receive an estimate of what you can afford. For a more comprehensive assessment, consider reaching out to a Cannect advisor who can provide tailored advice based on your specific circumstances.

Understanding your mortgage affordability is the first step towards homeownership. With Cannect’s tools and expert guidance, you can navigate the home-buying process with confidence.

Why Choose Cannect?

Cannect simplifies the mortgage process. With real-time affordability tools, personalized support, and access to flexible lending options, Also helps you get the mortgage that fits—without the stress.

Start with confidence. Choose Cannect.

Reference with related bogs

What First-Time Buyers Need to Know About Hidden Mortgage Costs

How to Get the Best Mortgage in Canada: 5 Mistakes to Avoid