Westport Properties Inc. loves this chart from Dominion Lending Centres that easily illustrates what you can expect to be qualified for based on the changes made to the mortgage rules. It's based on the rate you’ll need to qualify under, if you have less than 20 per cent to put down, even though your contracted mortgage interest rate (what you'll actually pay) will likely be much lower.
To use the chart, just select your household income from the column on the left. This is immediately followed to the right by how much that particular income would expect to qualify for under a rate of 4.64%, in terms of a total mortgage balance (assuming a 25-year amortization). Tracing the line further right, you can see the total cost of the home you could afford under that new "stress test" rate, depending on your down payment percentage and amount.
This chart is part of a larger information sheet on the new mortgage rules and what they mean, published October 12 by Dominion Lending Centres, which can be found here.
If you're looking to purchase a home in the White Rock/South Surrey area, see how Westport Properties Inc. can help you here, or see what Clients have said about working with us in the past by clicking here!