It is easy to find out how much you qualify for. (There is a chart at the bottom that you can use for quick reference)
Based on your income, there are 2 ways to look at it
- IF you have a job letter stating you have a guaranteed amount of income and a pay stub that supports that, well, that is usually all that is needed.
- If you have anything other than that, then we fall back on using either a 2-year average of your income with a pay stub (to support that you are on track to make that again)
(* There are some exceptions, that are at the bottom of this email)
For example
- If you make $82,000 a year and your job letter and pay stub support that, we can use $82,000 a year. Pretty easy, really.
- Now, if you make $82,000 a year, but you also have overtime or commissions or anything extra, the banks will look at your last 2 years of income and average them out.
For example,
Let’s say your T4 income for the last 2 years was
- 2021 T4 $88,000
- 2022 T4 $92,000
Then we can use an average of $90,000 for your income
For your convenience, here is a chart of what income will support what purchase price
(Assuming 10% down)
| Income | Purchase price | Down payment |
| $60,000 | $200,000 | 10% |
| $70,000 | $250,000 | 10% |
| $80,000 | $300,000 | 10% |
| $90,000 | $350,000 | 10% |
| $100,000 | $400,000 | 10% |
| $110,000 | $450,000 | 10% |
| $120,000 | $500,000 | 10% |
| $130,000 | $550,000 | 10% |
| $140,000 | $600,000 | 10% |
| $150,000 | $650,000 | 10% |
| $160,000 | $700,000 | 10% |
| $170,000 | $750,000 | 10% |
| $180,000 | $800,000 | 10% |
Notes
- If income goes down over the last 2 years then the banks will not average your income but just use your last year’s income
- Paystubs have to support that you are on track to make that income this year as well.
- Monthly debt payments of over $300 a month may affect the amount you qualify for
- Annual property taxes are estimated at $4,000
- Credit is assumed to be good to excellent
Call me to be sure at
519-217-3484 or email at geoff@getmortgaging.com
