How Much Can I Afford?

When calculating affordability or as we call it qualifying for a mortgage, there are many factors in determining how much you will qualify for. As a general rule, you would need at least 5% down, although if you have excellent credit, you could qualify for as little as zero down. That’s right, zero down payment still exists. You would qualify based on 32% of gross income for housing cost, which would include heating, taxes, electric etc. Note your total debt service ratio (all your debts combined) cannot exceed 42%. So here is an example.   Gross Income 80,000 Amount available for housing 25600 or 2133 monthly. Less Taxes and Utilities example 700 Leaves 1433/month for Mortgage Servicing. 1433 per month would purchase roughly 300,000 dollar home assuming a 3.5% interest rate and a 5% down payment.    If you would like to know how much you qualify for contact Eric Meredith @ 902.830.5139 or email [email protected] or fill out the contact form below. 

MORTGAGE CALCULATOR

Note: Tax refers to Property Taxes and PMI refers to Private Mortgage Insurance (normally required by lenders when a deposit of 20% or less is made on the purchase)

Are you curious how much the monthly payments would be for your dream home in Nova Scotia? Simply fill in the mortgage calculator fields and get instant feedback.

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