Mortgage Tools
About My Mortgage, How Much Can I Borrow?
The number one question any prospective homeowner asks about their mortgage is, how much can I borrow?
CMI's certified mortgage brokers are here to help you answer that question.
How Much Can You Expect in Your Mortgage?
The amount you are allowed to borrow in your mortgage depends on many factors, including: your gross household income, the amount of down payment you have, current interest rates, your total debt load, and the value of any assets you hold.
After collecting all of these numbers, the lender will carry out two calculations to determine your suitability:
- Total housing costs. The lender will ensure that your total monthly costs for housing do not exceed a set ratio. According to the Canada Mortgage and Housing Corporation (CMHC), that ratio is 32% of your gross monthly household income. Total housing costs consist of more than just the mortgage. They also includes taxes, heating and utilities, and, if applicable, condominium fees.
- Total monthly debt load. Again, lenders look at a ratio. They want to see that your total monthly debt load does not exceed about 40% of your gross monthly income. Your debt load includes housing, and any other debts, like personal loans, credit cards, car payments, and so on.
How CMI Can Help
The mortgage brokers at CMI are all certified mortgage professionals. We work closely with you to assess your current financial situation and to find mortgage and home equity options that work for you.
CMI mortgage brokers have access to over 250 lenders across Canada, so even if a traditional lender turns you down, we can work with our lending partners to find you the mortgage you need. We are committed to the highest standards of service and professional ethics, as are our lenders.
We specialize in helping people who may not be considered "traditional borrowers":
- If you are renewing during a difficult period, perhaps after a job loss, we can assist you in finding favourable terms for your mortgage.
- If you have had credit problems in the past or have little or no credit history, we can help.
- If you need to refinance or take out a second mortgage, our brokers and lenders can find a workable solution for you, whether you have a good or bad credit rating.
- If you are currently having difficulty managing your debt, we can assist you with debt consolidation plans.
We can also help with new home construction loans, vacation properties and a variety of home equity products.
Talk to CMI First
Are you asking yourself the age-old question about your mortgage: how much can I borrow? If so, you owe it to yourself to talk to us. You will get a clear idea of not only how much you can borrow, but of the range of options available to you.
