qualify

How much can $60,000/year in income get you in terms of a mortgage



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everybody it's Robert Klein for mortgage

Terminator what I'm going to do here is

calculate or tell you how the bank's

calculate what the maximum loan you can

possibly have on a mortgage so the first

thing I'm going to assume you have

perfect credit second thing I'm going to

assume you have no other debts okay

so let's assume you make $60,000 a year

based on this what the bank will allow

you to do is they'll figure out that the

maximum amount you're allowed to put

away in terms of a monthly payment

towards a mortgage or to all of your

monthly debts is 44% of your income so

if we took sixty thousand times point

four four that means twenty six thousand

four hundred dollars a year is allowed

to go to all your payments your monthly

payments or divide that divide that by

twelve twenty two hundred a month

move this down okay now when you buy a

property what they're going to factor in

there's a factor your taxes your heat

and your strata costs so make it very

simple if your tax is a hundred dollars

you got - 100 bucks off your 2200 - your

fifty dollars for heat I'm assuming

you're doing an apartment and I'm going

to assume $150 for strata so what you're

left with after this is C 2200 - 100 -

50 - 150 I actually do have the ability

to do that in my head but just to show

it 1,900 a month is allowed to go

towards a mortgage payment so now the

next question comes up do you want to do

variable or a fixed rate so for a fixed

rate

the rate would be approximately 3.9

percent as an example your qualifying

rate if you're doing a five-year fix is

the same thing as three point nine

percent so even though your rates three

point nine you're going to qualify based

on paying three point nine percent this

will be explained more in the next

option so your max loan for nineteen

hundred a month pain at three point nine

percent has thirty five year

amortization is so 35 years nineteen

hundred payment zero future value

interest rate three point nine monthly

calculate present value the maximum will

be four hundred and thirty four thousand

dollars a year up 434 thousand dollars

in total value or property you can get

now next one to look at is your variable

rate so variable rate the best rate

right now is a prime minus think it's

point seven so two and a half percent is

prime minus 0.7 you're looking at one

point eight percent now CMHC changed

some rules and they said that you no

longer can qualify based on a three

point nine percent you now have to

qualify at today's rates at five point

seven nine percent so even though you're

only paying one point eight percent the

bank wants you to qualify five point

seven nine and this is only true for

CMHC mortgages basically the loans value

is greater than eighty percent or you

have down payments of five percent - I

guess twenty so at five point seven nine

percent obviously that means we can only

afford a bit less to calculate that and

we're left with three hundred forty-one

thousand

obviously this is a pretty clean case

there's a lot more that goes into

mortgage broker and then just that VM

any questions give me a call Robert

Klein mortgage terminator my number

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Cheers