Mortgages
 

Hi,

I have been told that Canada offers mortgages in a different way than here in the UK. Here, they base it on your annual earnings and then triple it.

I have been told that this is not how it works in Canada.

I would like to know how it is decided how much you are allowed to borrow.

Thanks!! :D

Re: Mortgages
 

Try this site, it has a mortgage calculator that will take into account your salary, expenses, etc.

http://www.cmhc-schl.gc.ca/en/co/buh...FSIgDQod4FEzDA

Re: Mortgages
 

Hi,

I already went on this website.

We haven't got to Canada yet so I do not know how much we will be able to earn as I have heard that immigrants have to take a pay cut initially as we wouldn't have any Candaian work experience.

I really just want to know how mortgages are worked out in Canada, I have been told that it is not worked out like in the UK as stated above.

Thanks.

Re: Mortgages
 

What the CMHC states on their site is:

"This calculation is based on two simple rules that lenders use to determine how much of a mortgage you can afford. The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees.

Secondly, your entire monthly debt load should not be any more than 40% of your gross monthly income. This includes housing costs, and other debts such as car payments, personal loans, and credit card payments."

Re: Mortgages
 

Re: Mortgages
 

Some UK banks do that, others do an affordability calculation, much like the Canadian banks.

Re: Mortgages
 

Thanks to everyone for your replies!:)

Re: Mortgages
 

Depends on downpayment, whether you are applying under new immigrant program too...anyone who wants to know specific info-pls feel free to PM me..I am a Mortgage Agent.

Re: Mortgages
 

A great deal depends on the mortgage provider too.

You're better off with a mortgage broker in many cases than just going to the bank.

They can sometimes get people into houses and mortgages that didn't seem possible.:thumbup:

Re: Mortgages
 

Without pushing myself forward- thats what I do for a living, so if I can be of any help, I can cover any area of Canada...feel free to PM me..

Re: Mortgages
 

Hi Shelley748, I have sent you a PM:)

Re: Mortgages
 

Hi, could you please post details of good brokers.

Many thanks!:)

Re: Mortgages
 

Shouldn't we all have learned a lesson that this isn't a good idea?

Re: Mortgages
 

Just to give you some feeling of confidence- we are'nt lending like they are in the USA_ Canada is very different in that regard, very strict guidelines and never get folk into houses that they cannot afford.

Re: Mortgages
 

having problems pm'ing you shelly748 what am I doing thats wrong??