Homebuyer affordability
Calculate your home buying power.
CASH BACK OFFER
First-time home buyers receive up to $4,800 in value with any fixed-term mortgage of 3 years or more. Terms & conditions apply
Other affordability factors.
How to estimate your debt service ratio
Your total debt service ratio is the ratio of your debt to gross income. It’s one of the ways you can understand how much you can afford for a new home, while making sure that live within your means and don’t take on too much debt or financial risk.
Keep in mind that this is only an estimate. To understand what you’re qualified for, reach out to one of our Mobile Mortgage Specialists.
Monthly mortgage payments
Use our mortgage calculator to get an idea of what your payments could be.
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Monthly housing-related costs
Include condo fees, property taxes, mortgage insurance and heating costs. Read our breakdown of additional housing costs for a full list.
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Debt payments
Consider credit card debt, car loans and student loans.
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The total should not be more than 40% of your gross monthly income.
To find this number, multiply your gross income by 0.4. For example, If your gross income is $4,000, your monthly obligations shouldn’t be more than $1,600.
Down payment options.
The size of your down payment will affect your monthly payments and may also come with additional costs. To estimate how much you could put down, use our mortgage calculator.
High-ratio down payment
When you put down less than 20% of the home’s purchase price, your mortgage is considered a high-ratio mortgage. High-ratio mortgages are for:
- First time homebuyers or those purchasing newly built homes, allowing them to use a 30-year amortization period
- Residential owner-occupied homes
- Homes with purchase price less than $1.5 million
This means you’ll need:
- A mortgage amortization period that’s no longer than 30 years
- Mortgage default insurance to protect your lending in case you can’t make a payment
This type of down payment is eligible with high-ratio insured mortgages.
You can use our mortgage calculator to estimate the cost of insurance premiums, which are based on the size of your down payment. You can choose to pay in a lump sum on closing or installments over the length of your mortgage.
Additional buying and housing costs
On top of your down payment and your monthly mortgage payments, here are other costs you should be aware of in your home-buying journey.
You won’t have to include these costs when calculating your total debt service ratio, because you’ll only pay them once, but keep them in mind when figuring our your budget.
Purchase fees
- Home inspection fees
Although it’s not required, you may want to have the home inspected by a certified inspector.
Closing costs
- Legal fees
You’ll need a lawyer or notary to register the mortgage and complete the legal documents. - GST/PST
If the home is new and has never been sold before, you’ll be charged sales tax on the purchase. - Property transfer tax
You may need to pay tax of 1% on the first $200,000 of the home’s purchase price and 2% on the balance. Check the Government of BC’s First Time Home Buyers’ program to see if you are exempt from this fee. - Appraisal fees
The appraisal determines the value of the home you plan to buy.
Optional costs
- Renovations
Is your house move-in ready or a fixer upper? Consider any renovations you plan to do in the near or far future. - Moving costs
Whether you’re hiring professional or leaning on friends, factor in the costs of transferring your belongings to your new home.
Government programs for first time home buyers.
First Home Savings Account (FHSA)
A tax-free account that lets you grow your savings through market and interest-earning investments while you save up for your down payment.
First time home buyers’ program
The First Time Home Buyers’ Program is a provincial program that reduces or eliminates the amount of property transfer tax you pay when you buy your first home.
The Home Buyers’ Plan (HBP) is a federal program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build your first home.
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Featured mortgage rates.
Our top picks and special offers.
4.14%¤
3-year fixed-term fixed-rate insured
Book an appointment for a high-ratio insured mortgage. Terms and conditions apply.
4.24%**
Special offer
3-year fixed-term fixed-rate (special offer)
Special offer rate when you book an appointment for a fixed-term, fixed-rate mortgage. Terms and conditions apply.
4.24%¤
5-year fixed-term fixed-rate insured
Book an appointment for a high-ratio insured mortgage. Terms and conditions apply.
4.79%◊
1-year fixed-term fixed-rate
Great if you want to lock in a short-term mortgage and consider future refinancing options.
4.19%◊
2-year fixed-term residential
Great if you want to lock in a short-term mortgage. Terms and conditions apply.
4.39%◊,α
4-year fixed-term fixed-rate
Great if you want to count on making the same payment for your entire term.
4.44%◊
5-year fixed-term fixed-rate
Great if you want to count on making the same payment for your entire term.
3.95%◊
5-year fixed-term variable rate
Great if you want a variable rate with the security of predictable payments.