Mortgage Qualification Chart Learn How Much You Can Borrow

By: Thomas Cook

Mortgage Qualification Chart Learn How Much You Can Borrow

As of January 1 2018 all new mortgages (regardless of down payment amount) in Canada MUST have a stress test applied to them at the time of approval.
 
Regardless of the actual interest rate being offered by a lender, the borrower MUST qualify for the new mortgage at the Bank Of Canada (BoC) Rate OR the rate offered the consumer PLUS 2%.
 
This ‘Affordability Chart’ is based on the borrower’s gross income and using the current Bank Of Canada rate of 5.19%.  If the ‘actual’ mortgage rate being offered to the borrower is higher than 3.19%, then the borrower will automatically have to qualify at that rate PLUS 2.0%. 
 
For example, if the offered rate is 3.49%, then the ‘qualifying rate’ used would be 5.49% - and the size of mortgage the borrower could qualify for would be less than the numbers shown on the chart below. 

Income Mortgage Qualifying Amount (BoC = 5.14%)
$60,000 $255,000
$70,000 $305,000
$80,000 $354,000
$90,000 $400,000
$100,000 $447,000
$110,000 $493,000
$120,000 $548,000
$130,000 $603,000
$140,000 $657,000
$150,000 $794,000
$200,000 $953,000
$225,000 $1,075,000
$250,000 $1,160,000
$275,000 $1,270,000
$300,000 $1,400,000
$400,000 $1,900,000
$500,000 $2,200,000
 

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Thomas Cook
Thomas@LivingInToronto.com
647-962-1650

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