Worksheets, Checklists and Notes
We want The HomePages to be as useful as possible. That's why we have designed it so that you can carry it with you during your home search and use it to compare houses, to ensure you haven't forgotten anything, and to help you avoid surprises or unexpected extra costs.
How Much Can I Afford?
Here are two common guidelines to help you determine how much of your income you can allocate to housing costs:
|
Gross Debt Service Ratio
|
||
| Monthly Housing Costs | Example | Amount |
| Principal and Interest | $1,000 | |
| Property Taxes | $200 | |
| Heating Costs | $100 | |
| Total costs | $1,300 | |
| Gross Monthly Income (pre-tax) | $5,000 | |
| GDS = Monthly Housing Costs x 100/Gross Monthly Income | 26 % | |
|
Your Gross Debt Service Ratio Should Not Exceed 32 %
|
||
|
Total Debt Service Ratio
|
||
| Monthly Housing Debts | Example | Amount |
| Monthly Housing Costs | $1,300 | |
| Other Monthly Liabilities (car loan, credit cards, property tax) | $450 | |
| Total monthly debts | $1,750 | |
| Gross Monthly Income | $5,000 | |
| TDS = Total Monthly Debt x 100/Gross Monthly Income | 35 % | |
|
Your Total Debt Service Ratio Should Not Exceed 40 %
|
||
Source: RBC Royal Bank
What Will It Cost To Borrow?
The table below will help you calculate your monthly mortgage payment. For example, if your interest rate is 4 per cent amortized for 20 years, your cost per thousand dollars borrowed is approximately $6.04 (see the first row below).
To calculate your monthly payment, divide your mortgage amount by 1,000 and then multiply by your cost per thousand. For example, if your mortgage amount is $125,000 for 20 years at 4 per cent, the calculation would be $125,000/1000 = 125 x $6.04 = approximately $755 per month.
|
Cost Per Thousand Dollars Borrowed
|
||||
| Rate % | 10 Years $ | 15 Years $ | 20 Years $ | 25 Years $ |
| 4.00 | 10.11 | 7.38 | 6.04 | 5.26 |
| 4.25 | 10.23 | 7.50 | 6.17 | 5.40 |
| 4.50 | 10.34 | 7.63 | 6.30 | 5.53 |
| 4.75 | 10.46 | 7.75 | 6.44 | 5.67 |
| 5.00 | 10.58 | 7.88 | 6.57 | 5.82 |
| 5.25 | 10.70 | 8.01 | 6.71 | 5.96 |
| 5.50 | 10.82 | 8.14 | 6.84 | 6.10 |
| 5.75 | 10.94 | 8.27 | 6.98 | 6.25 |
| 6.00 | 11.07 | 8.40 | 7.12 | 6.40 |
| 6.25 | 11.19 | 8.53 | 7.26 | 6.55 |
| 6.50 | 11.32 | 8.67 | 7.41 | 6.70 |
| 6.75 | 11.44 | 8.80 | 7.55 | 6.86 |
| 7.00 | 11.56 | 8.94 | 7.70 | 7.01 |
| 7.25 | 11.69 | 9.07 | 7.84 | 7.16 |
| 7.50 | 11.82 | 9.21 | 7.99 | 7.32 |
| 7.75 | 11.94 | 9.35 | 8.14 | 7.48 |
| 8.00 | 12.07 | 9.49 | 8.29 | 7.64 |
| 8.25 | 12.20 | 9.63 | 8.44 | 7.80 |
| 8.50 | 12.33 | 9.77 | 8.59 | 7.96 |
| 8.75 | 12.45 | 9.91 | 8.74 | 8.12 |
| 9.00 | 12.58 | 10.05 | 8.90 | 8.28 |
| 9.25 | 12.71 | 10.19 | 9.05 | 8.45 |
| 9.50 | 12.84 | 10.34 | 9.21 | 8.62 |
| 9.75 | 12.98 | 10.48 | 9.36 | 8.78 |
| 10.00 | 13.11 | 10.63 | 9.52 | 8.95 |
| 10.25 | 13.24 | 10.77 | 9.68 | 9.12 |
| 10.50 | 13.37 | 10.92 | 9.84 | 9.29 |
| 10.75 | 13.51 | 11.07 | 10.00 | 9.45 |
| 11.00 | 13.64 | 11.22 | 10.16 | 9.63 |
| 11.25 | 13.78 | 11.37 | 10.32 | 9.80 |
| 11.50 | 13.91 | 11.52 | 10.49 | 9.98 |
| 11.75 | 14.05 | 11.67 | 10.65 | 10.15 |
Source: Canada Mortgage and Housing Corporation
What Is Included In My Total Cost?
The purchase price is just one of the costs involved in buying a house or condominium. To help you avoid any last-minute surprises, the checklist below lists the most common additional costs:
| Legal fees and disbursements | $ |
| GST and PST (if applicable) | $ |
| Land transfer tax | $ |
| Adjustments (reimbursements for interest, property taxes, utility payments etc. that have been prepaid by the vendor) | $ |
| New home warranty fee | $ |
| Condominium fees (if applicable) | $ |
| *Survey fee | $ |
| *Home inspection fee | $ |
| Appraisal fee | $ |
| Mortgage broker’s fee | $ |
| Mortgage insurance application fee | $ |
| Mortgage insurance premium (if not added to the mortgage principal) | $ |
| Moving expenses | $ |
| *Renovations and repairs | $ |
| Furniture, painting, carpeting etc. | $ |
| Service hook-up fees | $ |
| Property insurance$ | $ |
| Other | $ |
| Total Estimated Cost | $ |
Source: Canada Mortgage and Housing Corporation * These fees not usually necessary with the purchase of a new home
What Will My High Ratio Mortgage Insurance Cost?
Mortgages for more than 80 per cent of the purchase price must be insured. The table below indicates the premium you will pay as a percentage of the purchase price. In addition, you will pay a one-time application fee to the insurer, either Canada Mortgage and Housing Corporation or Genworth Financial Canada. Fees range between $75 and $235.
Mortgage insurance premiums are usually added to the principal amount of the mortgage.
|
Table of Mortgage Insurance Premiums
|
|
| Mortgage Percentage of Purchase Price | Premium* |
| Up to 65 % | 0.50 % |
| Up to 75 % | 0.75 % |
| Up to 80 % | 1.25 % |
| Up to 85 % | 2.00 % |
| Up to 90 % | 2.50 % |
| Up to 95 % | 3.75 % |
Source: Canada Mortgage and Housing Corporation * Mortgage insurance premiums are commonly added to the mortgage principal
