Need help deciding?
Need help deciding?
Are you shopping for a new mortgage?
Would you like to optimize your existing financial situation?
Our mortgage specialists will look at Canada's leading lenders and negotiate the best deal for you. New Concept Mortgage 1998 Inc works with over 40 of the top institutional lenders as well as a multitude of privately funded mortgage companies. This gives you access to the best mortgage rates and terms available in today's market. We provide you with professional, unbiased advice, free of charge.
How Much Can I Afford?
Investing in a mortgage can be the biggest financial decision that you will ever have to make. Home ownership should fit into your lifestyle, but it should not become overwhelming. Many buyers take on more debt than they can manage and quickly find themselves with nothing left over at the end of the month.
How much you feel you can afford and what a lender is willing to give you is not always the same. You need to feel comfortable with your budget. Most lenders will base the amount they will lend you on two basic calculations: your gross debt-service ratio (GDSR) and your total debt-service ratio (TDSR).
Most lenders require that not more than 32% of your family income is used for your housing costs. Housing costs include your mortgage principal, interest and tax payment, your heating and half of your condominium fees. This is called your gross debt-service ratio.
Lenders also want to know about your other monthly payments on loans and credit cards. These expenses are added to your housing costs, to calculate your total debt-service ratio. Most lenders require that this number is not more than 40% of your family's gross income.
It is important to note that the old established norms outlined above still apply to most standard lenders. However, we now access more than 100 lenders with different guidelines that make 'unique situations' the norm. Higher GDSR and TDSR ratios are met and even self-declared incomes for the self-employed with no limit guidelines can be accomplished.
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