Calculating the Answer to – How much can I Afford Mortgage in Canada?

The best way to know how affordable a mortgage can be is to use a Mortgage calculator. All you need to do is to enter your basic details, such as income, living costs, and debt payments, and you can get a complete breakdown of the best mortgage options for you.

You can know exactly how much down payment you can afford, your monthly payments, your LTT, how much cash you would need, and your monthly expenses approximated. These estimates are also localized to your city in Canada, so that you can get the best information within seconds.

You can click on the calculators on our navigation menu above and select affordability calculator to get started. You can also use sHelto’s other calculators to know the answers to – “how much can I afford mortgage?” and “how much would I qualify for a home?”.

You can then reach out to us to get a personalized approach to understand mortgage affordability and your interests can be aligned to home ownership, investment, and knowing the Canadian mortgage landscape.

Let’s explore further about the utility of mortgage calculators, the various factors impacting affordability, and how different mortgage terms can impact your expenses.


What is a mortgage calculator?

A mortgage calculator is a tool designed to capture your total income, expenses, and liabilities, to know whether you can qualify for a mortgage. You can also adjust the various input boxes to check for different types of mortgages that you can be eligible for.

Using a mortgage tool is important to know how affordable a house can be. This is especially important if you are buying a house for a first time and have not gone through the process of planning your expenses and understand your debt.

You can also learn more about the impact of concepts such as mortgage default insurance, minimum down payment, amortization period, gross debt service ratio, and gross income, as they apply to mortgages.


Factors that can influence mortgage affordability

These are some of the main factors that you should focus on if you want to know what can influence affordability of a mortgage in Canada.


Your income will determine the affordability of mortgage payments, as well as what type of a mortgage loan you can take on. This will also be vital during the mortgage pre qualification process, so that you and a co-applicant can pay off the loan with ease.

Monthly expenses

Your expenses can include a range of monthly outflows such as monthly condo fees, heating costs, property taxes, etc. These can impact your affordability of the monthly mortgage payment, which can ultimately be calculated in the mortgage affordability calculator.

Down payment

A key question that arises during the fact-finding process of – “how much do I qualify for mortgage?” is knowing “how much down payment is required?”. A 20% down payment will be ideal, but there will be an insurance cost attached to smaller down payments.


You may have additional debt that can impact how much mortgage you can afford. There may be car loans or car payments, credit cards, and other monthly debts that you need to focus on.

Interest rates

The interest rate will also be one of the main areas of concern when asking – “How much of a home loan can I get?”. This will depend on whether you are taking a fixed or variable rate, and what interest rates you’re able to lock-in.

Loan terms

The terms of the loans will also affect your liability period and your monthly expenses with regards to mortgage payments. When asking – “How much can I get approved for mortgage?”, it is vital to know your loan terms prior to starting discussions.

Credit score

Your credit score is also important to maintain, as it can ultimately impact your rates and eligibility. You need to have your financial documentation aligned with what is required, so that you’re able to get approved within the normal timeframe.


How to calculate mortgage affordability

Now that we have an understanding of the various factors that go into mortgage affordability, we can estimate our affordability in terms of ratios and approximations.

Using a mortgage calculator

The best way to know the answer to – “how much of a mortgage do I qualify for?” is to start with a calculator. The technical calculator by sHelto can graphically show you your approximated expenses, amortization, interest rate risks, and cash required.

Knowing best practices

There are a handful of best practices that can help you know – “how much of a mortgage can I get in Canada?”. The best policy is to optimize your down payment and have enough cash reserves to be able to pay off the monthly expenses.

The key ratios

There are important ratios that you should know which can help you in knowing your mortgage affordability. Your monthly housing costs shouldn’t be more than 39% of your gross household income. Your total debt should also be within 44% of your household income.


Knowing the mortgage options

Your mortgage options can also impact your affordability. You can get the best calculations for your monthly expenses by understanding what terms and rates work best for you. In a highly volatile market, an adjustable rate or a highly short term loan may not be attractive.

Fixed and adjustable rates

Fixed rates are determined to lock-in a single rate for your interest payments and to remove uncertainty in your monthly expenses. You can accurately know what payments are going to be flowing out, along with other debt expenses.

With adjustable rates, you can get a variable interest rate that may sometimes be more beneficial in more stable market environments. These rates can also be estimated by your lender, which can give you a better range for calculating affordability.

In some cases, wherein you are planning on selling prior to the adjustable rate initiating, an adjustable rate may be a better option. You should consult with the experts at sHelto, to know what interest rates are better for your specific case.

Loan terms & periods

The loan term, such as 5, 10 years, will be important to review so that you can check when you need to renew or adjust your rate type. You can also check your amortization period, which can be a maximum of 25 years if your down payment is under 20%.

You should also check for open or closed mortgage prepayment type, so that you can save on building up costs. When you want to estimate how much mortgage I can afford, this is another key consideration to think about when planning.


Looking at additional costs

Along with the down payment and the monthly payment, you need to calculate the additional costs that can add-up when looking at a mortgage. These costs can also determine your affordability when it comes to adding your total monthly expenses.

Property taxes

Property taxes and adjustments should be included in the total calculation of affordability. It is important to know these additional expenses prior to initiating your mortgage period.


Depending on your down payment, you may need to pay insurance costs. These can also be added to the calculation of affordability, especially when checking a what can I afford mortgage calculator.

Closing costs

You can budget around 2% of the purchase price for your closing costs. You need to budget this cost during the planning stage as well, as a part of your overall process.

Appraisal and inspection fees

There may be land appraisal, legal fees, inspection fees, home insurance, title insurance, and other costs that can add-up to the final calculation. When checking – “how much can i get approved for mortgage?”, you should also capture these additional costs.


While utilities may not reflect in the initial budgeting costs, they can be an important factor to track especially during the winter months. Your utilities costs will also start to add-up, and these costs can be captured earlier using a mortgage affordability calculator.


You can enhance your mortgage affordability through these strategies

These strategies can help you improve your affordability, allowing you to optimize the mortgage process fully. You can start with a clear goal of what you want your mortgage to look like for your own needs, and then start planning on savings, down payments, credit score, etc.

Improve your planning

You should start with a clear goal of why you are investing in a house in Canada. If you are buying a residential property to live in, then a fixed long-term mortgage will be ideal. If you are thinking about renting or selling it, then you need to capture all the monthly expenses as well.

Increase your credit score

Your credit score will impact your rates, your eligibility, and how much mortgage you can afford. A 680 and above is required by most lenders, but some might consider between 600-680 at a higher interest rate.

Increase household income

Your ultimate goal is to not only save-up for a down payment but to also ensure that your monthly payments are captured within the household income. You can estimate all your costs and even buffer in an emergency expense to be absolutely certain.

Lower monthly expenses

You can plan on lowering your monthly expenses, such as entertainment, outdoor dining, trips, vacations, etc. if they are significantly impacting your affordability ratios. You should also look at other additional costs, so that you’re able to afford a mortgage.

Reduce debt obligations

When asking – “how much of a home loan can I get?”, it is also important to know your total monthly expenses. You should focus on reducing monthly debt that is variable, such as credit cards and unnecessary expenses.



You can diminish the complexities around mortgaging, by using sHelto’s mortgage calculator for your financial queries. You can use this technical calculator to graph your monthly payments, amortization schedule, interest rate risk, and capture any additional expenses.

The indispensable strategic investment tool can help buyers understand the total financial implications of their decisions. You can create a comprehensive estimate prior to signing on the agreement, so that you are fully aware of all areas of mortgages, down payments, interests, terms, etc.

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