(Down Payment set for minimum of 5% of Purchase Price)
10 % is the mode of 5 Year Major Bank Rates and should be used under normal 5% down programs. (See Notes)
The Household Income Required figure of $ 32,902 is the minimum
amount of Gross Income to qualify for a total mortgage of $ 95,000
under generally accepted underwriting guidelines. To determine
qualifying sources of income, contact CanadaMortgage.com. Individual
lender policies may vary.
Typical loan qualification criteria require that borrowers spend no
more than 32% of their gross income (Gross Debt Service Ratio or GDSR) on shelter financial obligation
including mortgage payments, taxes, utilities and half of condo fees. In addition, borrowers should spend no more than
an additional 8% to 10% (Total Debt Service Ratio or TDSR = 40% to 42%)
of their gross income on all other financial
obligation including personal loans, car loans, credit cards and
other debts. The calculation therefore
assumes the total of all non-shelter financial obligations will not exceed
$ 2,632, or an additional 8% of the required household income.
The minimum loan term is set at six months. The greater of the
current three-year posted mortgage rate or the actual contract rate
may be used for calculation purposes. Borrowers may be required to
demonstrate their ability to cover closing costs equal to at least $ 1,500,
or 1.5% of the $ 100,000 purchase price.
The calculator's default Down Payment is set for a minimum of 5%
of the property purchase price. At present, 10 % is the mode of
Major Bank Rates and should be input to accurately calculate 5% down