How much do I qualify for before I begin looking to purchase a home?

Our consultants are trained professionals who will assist you with determining the price range you qualify for when you are prepared to purchase your home. To do this, our Consultants would first calculate your affordability by determining your Gross Debt Service Ratio (GDSR). This is done by taking your Taxable Income along with the amount of the household debt outstanding or the required monthly household payments, and assuming it is your principal residence you are purchasing, the Consultant will then calculate 32% of your income for use toward a the mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation.

In addition to this, our consultants would then calculate 40% of your Taxable Income known as the Total Debt Service Ratio (TDSR). This is done by taking your required monthly household payments along with all other monthly debt payments, including car loans, credit cards, and line of credit payments, and dividing them by your Taxable Income.

Although under typical lender guidelines the GDSR and TDSR should not exceed 32% and 40%, it is important to keep in mind that these are guidelines and may not necessarily fit your budget without having to give up the every day simple luxuries. Please feel free when consulting with one of our professionals to express your comfort level with the monthly payment that you feel suits you best, should you decide that the payment under the maximum guidelines is slightly above your budget.

Please feel free to contact us for some free advice.