Mortgage Qualifier

Buying, building or renovating and require mortgage financing?

If you answer “Yes”, then you’ll want to know how much of a mortgage loan you can qualify for.

There are two parts to this:

  • the amount you have available to cover the down-payment and closing costs on the home, in the case of a new home purchase AND
  • your ability to meet the payments on the mortgage you will require.


Let’s first consider the down-payment. The minimum down-payment that will be required is 5% of the selling price of the home. The table below will calculate the maximum purchase price you will be eligible for based on the down-payment available.

Mortgage Payments

As a general rule of thumb the mortgage payment together with the property taxes and heating costs should not exceed 32% of your Gross Income. This is called the Gross Debt Service (GDS) ratio. Further, Total Debt Service (TDS) ratio, which adds the monthly payments on all your loans and credit cards to your housing costs, should not exceed 40% of your household’s gross monthly income.

Are you limited to a price range based on your funds available for a downpayment? League Savings has some helpful advice on Saving for the Downpayment. Or, apply for a League Savings mortgage while online.