📝 Client Notes
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1 Take notes anytime

Click the 📝 Notes button on any tab to jot down client details, follow-up items, or important observations during your call.

2 Notes carry through

Your notes stay with you as you move between the Income, Liabilities, Property, and Scenarios tabs.

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MyMortgageMate.ca MyMortgageMate.ca

Residential Mortgage Calculator

Mortgage calculations, simplified.

Industry-accurate qualification in seconds.
Built by Canadian brokers, for Canadian brokers.

New Feature
🏘️
Properties Owned

Does your client already own properties? Head to Tab 3 - Properties Owned 🏘️ to add their existing owner-occupied or rental properties. The calculator will automatically factor rental income using Add-Back or Offset methods, and include all carrying costs in your GDS/TDS ratios. If they don't own any properties, simply skip Tab 3.

💰
Max Purchasing Power

One click reveals your client's maximum affordability across all lender tiers.

📄
Print-Ready PDF

Full qualification summary with ratios, amortization, and lender breakdown — ready to send.

✅
Document Checklist

Auto-generated lists based on income type — know exactly what lenders need.

📝
Client Notes

Jot down details during calls. Notes print directly onto your PDF report.

📊
Credit Score Guidance

Instant lender classification — Conventional, Alt-A, or Private — based on credit profile.

🇨🇦
Provincial Land Transfer Tax

Every province calculated. First-time buyer rebates included automatically.

🌙
Late Night Broker Mode

Dark theme for late sessions. Every chart, table, and popup adapts instantly.

🧭
Guided Step-by-Step

Progress bar walks you through income, liabilities, property, and results.

🎁100% Free
🔒Zero Data Stored
🧮Pure Math, Zero AI
🍁Made in Canada
Coming Soon

Live Mortgage Rates

Click anywhere outside or press Escape to close

💰 Max Purchasing Power

Click any option to apply those settings

⚠️ Stress Test is OFF

A Lender, B Lender, and High-Ratio B options require the Stress Test to be enabled. Without it, only Private Lending (equity-based) is available below.

✅ A Lender
Min. down, 25yr
— down
—
Min. down, 30yr FTB/NC*
— down
—
20% down, 30yr
— down
—
🟠 B Lender
20% down, 30yr
— down
—
🔶 High-Ratio B
20% down, 30yr
— down
—
* FTB/NC = First-Time Homebuyer / New Construction — 30yr amortization only available for these buyers
Click anywhere outside to close
💡 Tip: You can view these Max Prices anytime by clicking the 💰 Max Purchasing Power button on the Property tab!
Home Residential Commercial Lender Directory Learning Hub News

Free Canadian Mortgage Calculator – GDS TDS Qualification, Stress Test, CMHC Insurance, Multi-Property Support

🏠 Home 🧮 Residential Calculator 🏢 Commercial Calculator 🏦 Lender Directory 📚 Learning Hub 📰 News 💬 Feedback
Page Actions
👋 Welcome Guide 📊 Credit Scores 📄 Print / PDF
A

A Lender

Prime Rates

GDS 0.00%
TDS 0.00%
Income $0
Liabilities $0/mo
Payment $0/mo
⚠️ Fees Apply
Lender Fee
💡 Private Lenders: Stress test is not required. Try turning it OFF to see actual qualifying ratios.
💰 Income
💡 Broker's Tips
🌙 Late Night Broker Mode
📝 Notes
1 Applicant 1 — Income
Type Frequency Amount Annual
Applicant 1 Total $0.00
2 Applicant 2 — Income
Type Frequency Amount Annual
Applicant 2 Total $0.00
Combined Annual Income $0.00
💳 Liabilities
💡 Broker's Tips
🌙 Late Night Broker Mode
📝 Notes
1 Applicant 1 — Liabilities
Type Balance Auto Calc Manual Freq Override Monthly
Applicant 1 Total $0.00
2 Applicant 2 — Liabilities
Type Balance Auto Calc Manual Freq Override Monthly
Applicant 2 Total $0.00
Combined Monthly Liabilities $0.00
🏡 Property & Results
💡 Broker's Tips
🌙 Late Night Broker Mode
📝 Notes
📝 Property Input
🏠 Property Details
📊 Your Results
⚠️
Your Monthly Payment
$2,943/mo
Semi-Annual over 25 years
A

Lender

A Lender

Down Payment
$25,000
Mortgage
$494,000
GDS
Limit: 39%
32.4%
TDS
Limit: 44%
38.2%
CMHC
$19,000
✓ Required
LTV
95.00%
Loan-to-Value
Qual. Rate
7.25%
Stress Test
Max
$680K
$34K down
📊 Maximum Purchase Price
⚠️ Stress Test is OFF — These calculations require stress test for A/B/HR-B lenders. Without stress test, only Private Lending (equity-based) is available.
A Lender
5% min. down, 25yr
$596,000
$34,600 down
A Lender FTB
5% min. down, 30yr
$678,000
$42,800 down
A Lender
20% down, 30yr
$718,000
$143,600 down
B Lender
20% down, 30yr
$870,000
$174,000 down
HR-B Lender
20% down, 30yr
$980,000
$196,000 down
💼 Private: equity-based (20%+ down) — Learn more
💰 Monthly Payment
P&I $2,800
Property Tax $417
Heating $120
Condo (50%) $0
🏠 Loan Details
Loan Amount $475,000
Insurance $19,000
Down % 5.00%
Min. Required $25,000
Qual. Rate 5.99%
💵 Cash Required
Down Payment $25,000
Est. Closing Costs $8,500
Land Transfer Tax $0
Total Needed $39,975
🏛️
Estimated Land Transfer Tax by Province
Based on purchase price • First-time buyer rebates may apply
Ontario
$6,475
BC
$10,000
Alberta
$550
Quebec
$7,500
Manitoba
$5,600
Sask.
$1,500
Nova Scotia
$7,500
New Bruns.
$5,000
PEI
$5,000
N'foundland
$2,100
✓ Pass ✓ Pass $0/mo 680+ Some 650+ Your Settings
🏘️ Properties Owned
💡 Broker's Tips
🌙 Late Night Broker Mode
📝 Notes
🏘️
No Properties Added Yet
Does your client already own property? Add their existing homes, rentals, or investment properties here so carrying costs and rental income are factored into GDS/TDS.
No existing properties? Skip to Tab 4 — New Property & Results →
📊 Scenarios
💡 Broker's Tips
🌙 Late Night Broker Mode
📝 Notes
Compare Down Payment Scenarios

Adjust the down payment for each scenario to compare how it affects your qualification and monthly payments.

Scenario 1 (Current)
Down Payment %5.00%
Rate—
Amortization—
LTV95%
Insurance$19,000
Total Mortgage$494,000
Monthly Payment$2,944
0%
GDS
0%
TDS
Scenario 2
Down Payment %10.00%
Rate—
Amortization—
LTV90%
Insurance$13,950
Total Mortgage$463,950
Monthly Payment$2,765
0%
GDS
0%
TDS
Scenario 3
Down Payment %20.00%
Rate—
Amortization—
LTV80%
Insurance$0
Total Mortgage$400,000
Monthly Payment$2,384
0%
GDS
0%
TDS
💰 How to Use: Income Tab

⚡ Quick Start Guide

1 Select Income Type

Click the dropdown and choose your client's income source (Employment, Self-Employment, Pension, Rental Income, etc.)

2 Enter the Amount

Type the gross annual income (before taxes). Select the frequency if not annual.

3 Add More if Needed

Click "+ Add Income" for co-borrowers or additional income sources.

📈 Impact on Your Numbers

Higher income = Lower GDS/TDS ratios = More purchasing power!
Watch the ratios update in real-time as you type. Every dollar of income helps your client qualify for a larger mortgage.

📚 Income Type Reference

Type What to Enter
EmploymentGross salary from T4
Self-EmploymentNet income (Line 15000) or gross-up amount
PensionAnnual pension amount (CPP, OAS, workplace)
Rental Income50% of gross rent (add-back method)
Child SupportMonthly support received (need separation agreement)
CCBCanada Child Benefit (from CRA letter)
OtherDisability, alimony, trust income, etc.

💡 Pro Tip: Don't forget CCB (Canada Child Benefit)! Many clients don't realise this counts as qualifying income.

💳 How to Use: Liabilities Tab

⚡ Quick Start Guide

1 Select Liability Type

Click the dropdown and choose the debt type (Credit Card, Car Loan, etc.)

2 Enter the Balance

Type the outstanding balance. The calculator auto-calculates the monthly payment.

3 Add More if Needed

Click "+ Add Liability" to add more debts.

🎯 IMPORTANT: Fixed Payment Override

For Car Loans, Student Loans, and Personal Loans, you should use the ACTUAL fixed payment instead of the 3% calculation. Here's how:

Step-by-Step:
  1. Select the loan type (Car Loan, Student Loan, Personal Loan)
  2. Enter the outstanding balance in the "Balance" column
  3. In the "Manual" column, type the actual monthly payment from the credit bureau or loan statement
  4. The "Override" toggle flips ON automatically when you enter a manual amount
  5. The calculator now uses your actual payment instead of the 3% calculation

💡 Example: A $20,000 car loan at 3% = $600/mo calculated. But if the actual payment is $350/mo, using override saves $250/mo off TDS calculations. That's huge for qualification!

📉 Impact on Your Numbers

Liabilities increase your TDS ratio.
Every $100/mo in debt payments raises TDS by roughly 0.5-1%. High TDS can push your client from A Lender to B Lender. Using accurate payments via override = better qualification!

📚 All Liability Types

Type Auto Calc Use Override?
Credit Card3% of balanceRarely needed
Car Loan3% of balance✓ Always use actual!
Personal Loan3% of balance✓ Always use actual!
Student Loan3% of balance✓ Always use actual!
Unsecured LOC3% of balanceOptional
Secured LOCInterest-only calcOptional
Other3% of balance✓ Enter actual!

💡 Pro Tip: Fixed installment loans (car, student, personal) almost ALWAYS have actual payments lower than 3%. This is a game changer for qualification!

🏡 Property Tab: How to Use
📋 QUICK START GUIDE
1
Enter Purchase Price
Type the property price in the first field. All calculations update instantly.
2
Set Down Payment
Use the dropdown to choose: Minimum Required, Percentage, or Fixed Amount.
3
Select Property Type
Owner-Occupied or Second Home = can insure with 5% down. Rental/Investment = 20% min required.
4
Check Interest Rate & Amortization
Adjust rate and term. For first-time buyers or new builds, try 30-year for lower payments.
💡 HOW THIS AFFECTS YOUR RATIOS
Higher Down Payment → Lower mortgage = Lower monthly payment = Better GDS/TDS
Longer Amortization → Lower monthly payment = Better GDS/TDS (but more interest over time)
Higher Interest Rate → Higher qualifying rate = Worse GDS/TDS

🎯 Down Payment Options Explained

Minimum Required: Calculator auto-applies Canadian tiered rules:

  • 5% on first $500,000
  • 10% on portion between $500,000 and $1M
  • 20% required above $1M (no insurance available)

Percentage: Click dropdown, select %, type your number (e.g. "15" for 15%).

Fixed Amount: Click dropdown, select $, type exact dollar amount.

🏠 Property Type Options

✓ OWNER-OCCUPIED (can insure with 5% down)

  • Primary residence where you live

✓ SECOND HOME (can also insure with 5% down!)

  • Property for work relocation in another city
  • Property for adult child at university
  • Vacation/cottage property

✗ RENTAL / INVESTMENT (20% minimum required)

  • Properties generating rental income
  • Investment properties

Great news: Second Homes qualify for CMHC insurance just like owner-occupied! Many brokers don't know this.

📅 When to Use 30-Year Amortization

30-year insured is only available for:

  • First-Time Home Buyers (no home ownership in past 4 years)
  • New Build Purchases (any buyer)
Pro Move: 30-year lowers payments significantly. CMHC premium only 0.20% higher. Great for clients just over the TDS limit!

🔢 Compounding Setting

Leave on Semi-Annual for most deals (A/B lenders). Switch to Monthly only for Private lending calculations (results in slightly higher effective rate).

📊 CMHC Premium Reference

Down Payment 25-Year 30-Year
5% - 9.99% 4.00% 4.20%
10% - 14.99% 3.10% 3.30%
15% - 19.99% 2.80% 3.00%
20%+ No Insurance Required

💡 Quick Tip: Watch the Results Panel as you change values. CMHC updates automatically when down payment is under 20%!

📊 Scenarios Tab: How to Use
📋 QUICK START GUIDE
1
Scenario 1 is Auto-Synced
Mirrors your Property tab settings. Don't edit it here, it updates automatically.
2
Edit Scenarios 2 & 3 Freely
Click on the down payment field and type a new amount. Watch the ratios recalculate instantly.
3
Compare Lender Lanes
Each card shows which lender type the client qualifies for at that down payment level.
4
Reset if Needed
Click "Reset" to restore default scenarios based on your current Property tab settings.
💬 GREAT FOR SHOWING CLIENTS
  • Impact of putting more money down (watch payment drop)
  • How to avoid CMHC insurance (20%+ down = no premium)
  • Different qualification scenarios (A vs B vs Private)
  • What happens if they wait and save more

🚦 Lender Lane Quick Reference

Lane GDS TDS Min Down
A Lender ≤39% ≤44% 5% (insurable)
B Lender ≤50% ≤50% 20%
High Ratio B ≤60% ≤60% 20%
Private >60% >60% 20%

Note: Only A Lender deals can be insured (CMHC). B/Private require 20% minimum.

📊 Credit Score Guidelines

A Lender: 650+ credit
B Lender: Flexible, can work below 650
Private: No credit requirements

⚡ About Stress Test

Stress Test toggle affects lender lane display. When OFF, calculator shows "Private" since only private lenders don't require stress testing. A/B lenders always require the stress test to be applied.

💡 Quick Tip: Try putting 20% down in Scenario 2 to show your client how much they'd save by avoiding CMHC insurance!

📋 Self-Employed T1 NOA – Net Declared Income

✅
A-LENDING & B-LENDING ELIGIBLE
Traditional provable income verification using tax returns

Traditional Provable Income – Uses T1 Generals and Notice of Assessment (NOA) to verify your net declared income. Requires minimum 2 years continuously owning/operating the business. Accepted by both A Lenders and B Lenders.

🧮 How Lenders Calculate Income

Key Lines on T1 General:
• Line 15000 – Total Income (primary line used by most lenders)
• Line 13500 – Net Business Income (from T2125)

Calculation Method: Lenders use the 2-year average of Line 15000 from your NOAs. If the most recent year is lower, many lenders will use the lower of current year or 2-year average.

📋 Documents Required

Sole Proprietor / Partnership:
  • T1 General – 2 most recent years with Statement of Business Activities
  • Notice of Assessment (NOA) – 2 most recent years
  • Confirmation of No Taxes Owing – critical requirement
  • Business Proof – Business License, Trade License, OR GST/HST Registration
Incorporated Business:
  • All above PLUS:
  • Articles of Incorporation
  • Notice of Directors with shareholder breakdown
  • Corporate T2 Return – 2 years
  • Financial Statements – 2 years (accountant-prepared)
  • Corporate Search – current status

💡 Gross-Up & Add-Backs (Ask Your Lender!)

15% Gross-Up: Some lenders allow sole proprietors to gross up Line 15000 by 15%. This is NOT available for corporations. Ask your lender if gross-ups are available.

Alternative – Add-Backs: Instead of gross-up, you may add back non-cash expenses:
• Capital Cost Allowance (CCA/Depreciation)
• Business Use of Home
• Amortization
Must be supported by Statement of Business Activities from T1 General.

💰 Self-Employed – Self Declared Income

🏦
B-LENDER ONLY PROGRAM
More purchasing power for business owners with write-offs

Self Declared Income uses your gross bank deposits rather than your declared T1 income. This is ideal for business owners who write off a lot of expenses and don't show much net profit on their tax returns. Only true B-Lenders offer this program.

🧮 How It's Calculated (B-Lender Formula)

Step 1: Calculate gross deposits from 12 months of business bank statements
Step 2: Deduct 3 to 5 of the top business expenses (rent, payroll, inventory, supplies, etc.)
Step 3: The remainder = Your Qualifying Income for debt servicing

💡 This typically qualifies you for significantly MORE purchasing power than using your declared T1 income!

👤 Who This Is For

This program is standard for most business owners who:
• Write off significant business expenses
• Show lower net profit on tax returns than actual cash flow
• Have strong gross revenue but modest declared income
• Need more purchasing power based on real business income

📋 Documents Required

  • 12 Months Business Bank Statements – complete, consecutive statements showing deposits
  • Business License – valid and current (min 2 years in business)
  • Articles of Incorporation (if incorporated)
  • GST/HST Returns – if registered, supports revenue claims
  • Current Corporate Search (if incorporated)

⚠️ Important Considerations

• B-Lender rates are higher than A-Lender rates
• Typically requires 20%+ down payment
• Max GDS/TDS: 50%/50% (Standard B-Lender) or 60%/60% (High Ratio B-Lender)
• Specialist B-Lenders can go as low as 400 credit score – but there must be a good story and explanation for the credit drop
• NOT available for commissioned employees, rentals, or refinances with some lenders
• Former bankrupts/consumer proposals may need explanation but may still qualify

💼 Employment Income Guidelines

✅
POSITIVE IMPACT ON RATIOS
More income = Lower GDS & TDS = Better qualification

T4 Employment Income is the most straightforward income type for lender qualification.

📋 Documentation Required

  • Letter of Employment – dated within 30 days
  • Recent Pay Stub – typically last 2 pay periods
  • T4 – most recent year (or 2 years for variable income)
  • NOA – Notice of Assessment

⚠️ Probation Period

Most A Lenders require the client to be past probation (typically 3 months). Some B Lenders may accept clients still in probation with a letter confirming permanent employment upon completion.

💰 Commission, Overtime & Bonus

Variable income (commission, OT, bonuses) typically requires a 2-year average. Use the lower of the 2-year average or most recent year. Ensure the LOE confirms this income is ongoing.

🏛️ Pension Income Guidelines

✅
POSITIVE IMPACT ON RATIOS
More income = Lower GDS & TDS = Better qualification

Pension income is stable and predictable – lenders love it! Multiple pension sources can be combined.

📋 Types of Pension Income

  • CPP/QPP – Canada/Quebec Pension Plan
  • OAS – Old Age Security
  • Company Pension – Employer-sponsored pension plans
  • RRIF/LIF – Retirement fund withdrawals

📄 Documentation

Pension Award Letter or T4A(P) showing annual pension amount. For company pensions, the annual pension statement is required. Bank statements showing regular deposits can support.

⚠️ Lender Policies Vary

Every lender handles pension income differently – check with your BDM for specific documentation requirements and acceptable pension types.

🏘️ Rental Income - Use Properties Owned

🏘️

Head to Tab 3 - Properties Owned

Rental income should not be entered here on the Income tab. Instead, use the Properties Owned section where you can properly account for the rental property's carrying costs alongside its income.

Why not here?

Lenders don't just look at rental income in isolation. They need to see the full picture: the property's mortgage payment, taxes, heating, and condo fees alongside the rental income. The Properties Owned section handles all of this automatically using industry-standard Add-Back or Offset qualification methods.

How to add rental income:

  1. Click on 3 Properties Owned 🏘️ in the tab bar above
  2. Click + Add Property
  3. Switch the occupancy to Rental or Owner + Rental
  4. Enter the property's carrying costs and rental income
  5. The calculator will automatically factor it into your GDS/TDS ratios

This will switch to Tab 3 automatically

👨‍👩‍👧 Child Support Guidelines

✅
POSITIVE IMPACT ON RATIOS
More income = Lower GDS & TDS = Better qualification

Child support can be used as qualifying income if properly documented and expected to continue.

📋 Requirements

  • Court Order or Separation Agreement – showing payment amount
  • 2-3 months bank statements – proving consistent receipt
  • Continuity requirement: Must continue for 3-5 years (varies by lender)

⚠️ Age Limits

Lenders consider the child's age – support typically ends at age 18 (or later if in school). If child will turn 18 within 3-5 years, some lenders may not count this income. Calculate based on amortization period.

💡 Spousal Support

Spousal support (alimony) has similar requirements but different continuity rules. Time-limited spousal support may not qualify if ending within 3 years.

🍼 Canada Child Benefit (CCB)

✅
POSITIVE IMPACT ON RATIOS
More income = Lower GDS & TDS = Better qualification

The Canada Child Benefit is a tax-free monthly payment for families with children under 18.

✅ Lender Acceptance

Most lenders accept 100% of CCB income. The key difference is the age limit each lender accepts – some accept children up to age 12, 15, or 18. This is lender-dependent.

📄 Documentation Required

  • CCB Statement from CRA (My Account)
  • Bank Statements – showing CCB deposits (3 months)
  • Children's Birth Certificates or Passports – to verify each child's date of birth and CCB eligibility

⚠️ Lender Policies Vary

Every lender accepts CCB income slightly differently – check with your BDM for the specific lender's age limits and documentation requirements.

📋 Other Income Guidelines

✅
POSITIVE IMPACT ON RATIOS
More income = Lower GDS & TDS = Better qualification

Various other income types may qualify depending on lender policies and documentation.

📋 Common "Other" Income Types

  • Investment/Dividend Income – T5 slips, 2-year history
  • Interest Income – consistent GIC/savings interest
  • ODSP/Disability – government benefit letters
  • Foster Parent Income – some lenders accept
  • Foreign Income – tax returns, visa status matters

✅ General Documentation Rule

For any "other" income, you'll typically need: 2 years of T1 Generals + NOAs showing consistent income, plus supporting documents proving the source is ongoing.

💡 Pro Tip

If income doesn't fit standard categories, reach out to your BDM before submitting. Many lenders have exceptions or workarounds for non-traditional income with proper documentation.

📊 Credit Score Guide for Mortgage Lending

Your credit score determines which lenders you qualify for and affects your interest rate. Here's how different lending tiers break down:

✅ A Lender — Credit Score 650+

Optimal: 680+ | Minimum: 650
Best rates available. Major banks and credit unions. Requires provable income (T4/T1), clean credit history, and standard GDS/TDS ratios (typically 39%/44%).

⚡ B Lender — Credit Score 500+

Optimal: 550+ | Minimum: 500
Alternative lenders. Higher rates than A-lenders. More flexible income verification (stated income available). GDS/TDS can go up to 50%/50%. Good for self-employed, new to Canada, or bruised credit.

🔥 High Ratio B Lender — Credit Score 400+

Optimal: 500+ | Minimum: 400
Specialty B-lenders for challenged credit. Higher rates and fees. GDS/TDS can go up to 60%/60%. Requires larger down payment. May accept recent bankruptcies or consumer proposals.

🏦 Private Lender — Any Credit Score

Credit score is less important — focus is on equity
Private lenders focus on property equity (LTV) rather than credit score. Highest rates and fees. Typically requires 20-35%+ equity. Good for short-term bridge financing or credit rebuilding.

💳 Credit Card Calculation

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

This calculator automatically calculates the monthly payment lenders use for qualification.

🧮 Automatic Calculation

Formula: Outstanding Balance × 3% = Monthly Payment
Example: $10,000 balance × 3% = $300/month for TDS

📝 What to Enter

Just enter the BALANCE — the calculator does the rest!

  • Enter the current balance owed, not the credit limit
  • If paid in full monthly, balance may be $0
  • Store credit cards work the same way

✏️ Override Option

If the credit bureau shows a lower minimum payment than 3%, use the "Manual Override" toggle to enter the actual payment. This can help clients qualify!

🚗 Car Loan / Vehicle Financing

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

By default, this calculator uses 3% of the balance. For car loans, you'll want to use the actual payment instead!

📝 Step-by-Step Instructions

Step 1: Enter the outstanding balance
Step 2: Toggle "Use Manual" to ON
Step 3: Enter the actual monthly payment from the loan contract

💡 Why This Matters

The actual payment is almost always lower than 3% of the balance. Using the real payment can significantly improve your client's TDS ratio and help them qualify!

⚠️ Good to Know

  • Leases count the same as loans
  • If paid off within 10 months, some lenders may exclude it
  • Include warranty/protection packages if rolled into payment

📝 Personal Loan

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

By default, this calculator uses 3% of the balance. For personal loans, you'll want to use the actual payment instead!

📝 Step-by-Step Instructions

Step 1: Enter the outstanding balance
Step 2: Toggle "Use Manual" to ON
Step 3: Enter the actual monthly payment from loan statement

💡 Why This Matters

The actual payment is almost always lower than 3% of the balance. Using the real payment can significantly improve your client's TDS ratio!

📋 Documentation

  • Recent loan statement showing payment amount
  • Payout statement if clearing before closing

🎓 Student Loan Calculation

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

How you enter student loans depends on whether payments have started.

🚫 Scenario 1: Payments NOT Started

Still in school or grace period? Leave it on Auto calculation.

The calculator uses 3% of balance as an estimate. Most lenders use 1-3% for students not yet in repayment.

✅ Scenario 2: Payments HAVE Started

Use the actual payment — it's almost always MUCH lower!

Step 1: Enter the outstanding balance
Step 2: Toggle "Use Manual" to ON
Step 3: Enter the actual monthly payment from NSLSC

💡 RAP Program

If your client is on Repayment Assistance Plan (RAP) with $0 payments, enter $0 as the manual payment! Get documentation from NSLSC to support this.

💰 Unsecured Line of Credit

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

This calculator automatically calculates the monthly payment for unsecured LOCs.

🧮 Automatic Calculation

Formula: Outstanding Balance × 3% = Monthly Payment
Example: $20,000 balance × 3% = $600/month for TDS

📝 What to Enter

Just enter the BALANCE — the calculator does the rest!

  • Enter the current balance owed, not the credit limit
  • If unused ($0 balance), no liability is calculated
  • Personal LOCs without collateral = Unsecured

⚠️ Unsecured vs Secured

Unsecured LOC: No collateral, uses 3% rule
Secured LOC (HELOC): Backed by property, uses a different (lower) calculation

🏠 Secured Line of Credit (HELOC)

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

This calculator automatically calculates HELOC payments using the lender-standard formula.

🧮 Automatic Calculation

Formula: Balance amortized at 5.25% over 25 years
Example: $50,000 HELOC ≈ $299/month for TDS

📝 What to Enter

Just enter the BALANCE — the calculator does the rest!

Enter the current balance owed, not the credit limit.

💡 Why This is Better for Clients

Secured LOC (HELOC): Uses 5.25%/25yr = Lower payment
Unsecured LOC: Uses 3% rule = Higher payment

Make sure to select the correct type! Using "Secured LOC" for a HELOC results in a lower calculated payment and better TDS.

📋 Other Liabilities

⚠️
NEGATIVE IMPACT ON RATIOS
More debt = Higher TDS = Reduced qualification

Use this for liabilities that don't fit other categories. Always use Manual Override to enter the actual payment.

📝 Step-by-Step Instructions

Step 1: Enter the outstanding balance (or $1 if unknown)
Step 2: Toggle "Use Manual" to ON
Step 3: Enter the actual monthly payment

📊 Common "Other" Liabilities

  • Child Support / Alimony - Enter actual monthly payment
  • CRA Tax Payment Plans - Monthly arrangement amount
  • Family Loans - If on credit bureau or documented
  • Buy Now Pay Later - Afterpay, Klarna, etc.
  • Retail Financing - Furniture, appliances, etc.

🏛️ Property Tax Estimation

⚠️
NEGATIVE IMPACT ON RATIOS
Higher property tax = Higher GDS & TDS = Reduced qualification

Lenders will typically use 1% of the appraised value as an estimate for mortgage calculations until the tax evaluation has been completed.

📈 Interest Compounding

Semi-Annual Compounding
Used by Banks, Credit Unions, and B Lenders — this is the Canadian standard for regulated mortgage products.
Monthly Compounding
Used exclusively by Private Lenders.

🏢 Condo/Strata Fees

⚠️
NEGATIVE IMPACT ON RATIOS
Higher condo fees = Higher GDS & TDS = Reduced qualification

Enter the full monthly condo fee. The calculator automatically uses 50% toward your GDS/TDS ratios.

📊 How It Works

You Enter: Full monthly condo fee (e.g., $600/month)
Calculator Uses: 50% for ratios (e.g., $300/month)

⚠️ Why 50%?

Lenders recognize that condo fees include maintenance items (reserve fund, common repairs) that aren't pure housing costs. Only 50% is counted because the other 50% is considered equivalent to maintenance a homeowner would pay anyway.

✅ What to Include

  • Monthly condo/strata fees
  • Special assessments (if ongoing monthly)
  • If heat/water included in fees, still enter full fee amount

💵 Cash Required

This box shows all the cash you will need on closing day. Here is how we calculate each part:

🏠
Down Payment

The cash portion you put toward the purchase price, based on your selected down payment amount or percentage.

📋
Est. Closing Costs

We estimate total closing costs at 1.5% of the purchase price. Since Land Transfer Tax is shown separately below, this figure is the 1.5% estimate minus the LTT for your selected province. This covers legal fees, title searches, disbursements, surveyor fees, and other transaction costs. Tap the ❓ beside Est. Closing Costs for a full breakdown.

⚠️
$3,000 Minimum

At higher purchase prices, the Land Transfer Tax can exceed the 1.5% estimate on its own. When this happens, we apply a $3,000 minimum for Est. Closing Costs because you will always have legal fees, title insurance, and disbursements regardless of the purchase price.

🏛️
Land Transfer Tax

A provincial tax charged on every property purchase. The amount changes based on your selected province and purchase price. See the LTT breakdown banner below the card for details.

Total Needed = Down Payment + Est. Closing Costs + Land Transfer Tax

📋 Estimated Closing Costs

⚠️ This is a broad estimate only. Your actual closing costs will vary depending on your lender, lawyer, property type, and province. Always confirm with your mortgage professional.

How we calculate it: We use a standard industry estimate of 1.5% of your purchase price as a starting point. Because Land Transfer Tax is already shown as its own line item in the Cash Required box, this figure represents the 1.5% estimate minus the LTT for your selected province.

Why is there a $3,000 minimum? At higher purchase prices the Land Transfer Tax alone can exceed the 1.5% estimate. Even when that happens, you will still have real costs such as legal fees, title searches, and disbursements. The $3,000 floor ensures these unavoidable costs are always accounted for.

Typical closing costs may include:

⚖️ Legal Fees $1,500 to $2,500
📋 Title Search / Title Insurance $250 to $500
📂 Disbursement Fees $300 to $700
🔍 Home Inspection $400 to $600
📊 Appraisal / Survey Fees $300 to $700
💼 Lender / Broker Fees $0 to $1,000
🔓 Private Lender Fees $1,500 to $2,500+
💡 Pro Tip: Budget 2 to 3% of the purchase price as a cushion for unexpected costs.

🛡️ Mortgage Stress Test (B-20)

⚠️
NEGATIVE IMPACT ON RATIOS
Stress test raises qualifying rate = Higher GDS & TDS = Reduced qualification

The stress test ensures borrowers can afford their mortgage if rates increase. It's mandatory for federally regulated lenders (A Lenders).

📊 How It's Calculated

Qualifying Rate = Higher of:
• Your contract rate + 2%, OR
• The 5.25% floor rate
Example: 4.5% contract rate → Qualify at 6.5% (4.5% + 2%)

✅ Stress Test by Lender Type

Lender Type Stress Test
A Lenders (Banks) ✓ Always Required
Insured Mortgages ✓ Always Required
Credit Unions ✓ Required*
B Lenders ✓ Required*
Private Lenders ✗ Generally not required

* Enquire with your BDM — special stress test offers may be available from time to time.

💡 Pro Tip

The Maximum Purchase Price calculator in this tool ALWAYS applies the stress test to protect you from over-purchasing, even if you turn it off here. The toggle only affects the main calculation display.

🔥 Heating Costs

⚠️
NEGATIVE IMPACT ON RATIOS
Higher heating costs = Higher GDS & TDS = Reduced qualification

Heating costs are part of your GDS calculation. Use the defaults unless you have specific utility information.

📊 Standard Amounts

House: $120/month (standard industry estimate)
Condo: $100/month (often lower due to shared walls)
Custom: Use actual utility cost if known

💡 Pro Tip

If heat is included in condo fees, you can enter a lower heating amount. Some lenders accept $0 for condos with heat included, but $50-75 is more conservative.

📅 Amortization Period

📅
RATIO IMPACT DEPENDS ON DIRECTION
Longer ✓ Lower payments = Lower ratios
Shorter ⚠ Higher payments = Higher ratios

Amortization affects your monthly payment and which lenders are available.

📊 Amortization Limits by Lender

A Lender (Insured) Max 25yr (30yr FTHB/New Build)
A Lender (20%+ down) Max 30yr
B Lender Up to 35-40yr (lender dependent)
Private 40yr+ / Interest Only

💡 Broker Tips

  • Some B Lenders offer up to 40-year amortization — check with your BDM!
  • Longer amortization = lower payments = better GDS/TDS ratios
  • 30-year insured adds only +0.20% to CMHC premium — often worth it!
  • Private lenders can offer Interest Only for maximum cash flow flexibility

⚠️ Critical Rule

Insured mortgages (less than 20% down) have strict amortization limits. Selecting 35+ years with less than 20% down will show "Does Not Qualify" because this combination isn't available.

🔍 Why A Lender?

💰 How We Calculated This Amount

🏘️ Properties Owned - How To Use This Section

When should I use this section?

Use this section only if the applicant(s) already own one or more properties, whether that's their current home, a rental property, or a property where they live and rent out part of it (like a basement suite). If they don't own any existing properties, simply skip this tab and go straight to Tab 4 - New Property & Results.

Why does the lender need this information?

Lenders need to see the full financial picture. Every property your client owns has carrying costs (mortgage payment, property taxes, heating, condo fees) that count against their debt service ratios. If any of those properties generate rental income, that income can help improve qualification, but lenders apply specific rules about how much of that rental income they will accept.

The three property types:

OWNER-OCCUPIED

The applicant lives in this property. All carrying costs (P&I, tax, heating, condo fees) are added to TDS. No rental income is generated.

RENTAL

The entire property is rented out as an investment. Rental income can offset or supplement qualification. Carrying costs are adjusted by ownership percentage.

OWNER + RENTAL

The applicant lives in the property AND rents out a portion, such as a basement suite, laneway house, or a unit in a duplex. Full carrying costs apply (since they live there), but the rental portion generates income that can help with qualification.

Add-Back vs Offset - What's the difference?

Add-Back Method

A percentage of rental income (based on inclusion rate) is added to your gross annual income. The full carrying costs are added separately to TDS liabilities. This is the most common method used by A-lenders.

Offset Method

Rental income is compared directly against carrying costs. If income exceeds costs, the surplus boosts your income. If costs exceed income, the deficit is added to TDS liabilities. Can be more favourable for strong rental properties.

What is the Inclusion Percentage?

Lenders don't accept 100% of rental income at face value. They apply a discount (the inclusion rate) to account for vacancies, repairs, and management costs. A-lenders typically use 50%, while B-lenders may accept 80% or even up to 100%. Always confirm the rate your lender uses.

⚠️ Important: Every Lender is Different

The vast majority of lenders use their own rental income worksheets which are specific to each institution. The Add-Back and Offset calculations here provide a general estimate to help you check whether your client's ratios are in the right range. Always verify the exact method, inclusion rate, and documentation requirements directly with your lender before making any commitments based on these numbers.