July 29, 20263 min read
If you are planning a purchase, understanding this topic before you submit an application can prevent surprises. The income required to buy a home in Ontario changes with the home price, down payment, mortgage rate, property taxes, heating costs and your existing debts.
Key points to understand
Here is what matters most:
- Two households earning the same amount can qualify for very different mortgages if one carries a car payment or large credit-card balances.
- A larger down payment lowers the mortgage amount and can improve affordability, although other qualification rules still apply.
- Condo fees can affect qualifying because lenders include a portion of those fees in housing-cost calculations.
- The stress-test qualifying rate is often higher than the mortgage contract rate, so a simple payment calculator can overstate buying power.
Ask for an affordability calculation based on a realistic target property price and your actual monthly liabilities.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote