Income Required For Mortgage Bc

In order to be approved for a mortgage you will need at least 5 of the purchase price as a down payment if your purchase price is within 500 000.

Income required for mortgage bc. The monthly mortgage payment includes principle interest property taxes homeowner s insurance and any other fees that must be included. The income required is roughly 12 13 per cent lower for borrowers who use a credit union that qualifies them at the 5 year fixed contract rate mclister said. The minimum down payment in canada is 5. Many lenders used to offer what s known as stated income mortgages where all a borrower had to do was state their income and the mortgage would be based on that number without any verification process.

List of 2 items gds is the percentage of your monthly household income that covers your housing costs including mortgage payments condo fees utilities and taxes. Affordability maximum affordability this is the maximum home price you can afford based on your income or combined income and expenses. The maximum amount you calculate may actually overestimate what you can really afford. These costs are commonly referred to as piti which is derived from.

Needless to say those days are pretty much gone. If your purchase price is between 500 000 and 1 000 000 your minimum down payment is 5 of the first 500 000 and 10 of the price between 500 000 and 1 000 000. So to calculate if you have the required income for a mortgage the lender takes your projected monthly mortgage payment adds to it your minimum monthly payments for credit cards and any other loans plus legal obligations like child support or alimony and compares it to your monthly income. Your maximum affordability is also constrained by the qualifying mortgage rate set by the bank of canada.

The qualifying rate requires you to qualify for a 5 year fixed mortgage rate if you seek a variable mortgage or a mortgage with a lesser term. Also think about the extra costs associated with buying a property such as closing costs mortgage loan insurance premiums moving costs unexpected. It should be at or under 35 of your pre tax household income. For down payments of less than 20 home buyers are required to purchase mortgage default insurance commonly referred to as cmhc insurance.

Pincipal interest tax insurance. Use the mortgage qualifier tool to see if you can qualify for a mortgage based on your income and expenses. According to the canadian mortgage and housing corporation note 1.