Our mortgage pre-approval calculator is a great tool ( if I say so myself ) to give you an idea about how a lot mortgage you will qualify for. When I meet clients, this is one of the first questions they ask me .

**A mortgage pre-approval calculator will let you know approximately how much mortgage you can qualify for based on your income. From the mortgage amount, you can then calculate how much purchase price you qualify for depending on your down payment. Try our calculator below.**

I want to mention one thing here. This calculator does not take into consideration how a lot debt that you may or may not have. If you have debt including credit cards with outstanding balances, loans, car loans, car leases or lines of credit rating, the mortgage you qualify for may be different .

If you want to get an official pre-approval to know precisely how much mortgage you will qualify for, then complete your personal details in the middle. We will connect with you to review and give you an official act.

This mortgage pre-approval calculator above will provide you with a act and a reasonably accurate estimate based on your income. however, this should n’t be used to make a buy decisiveness .

It ‘s authoritative to have a mortgage broker review your income documents, to look at your credit agency and review your early monthly obligations. An official pre-approval will include a credit check and text file review .

How To Use The Mortgage Pre-Approval Calculator?

The first and most important field to input is our mortgage pre-approval calculator is your income. If you are single, use your income. If you are a couple buying together then add your incomes together and input in this field .

Let me explain how to calculate your income ( the means a lender would consider it ). Scroll through here to see which applies to you …

**Salaried Employee: ** If you are a salaried employee, then you would input your annual compensated income before income tax is paid .

Let ‘s say your wage is $ 6,000 per calendar month. then you would input $ 72,000 into the calculator .

**Salaried plus bonuses: ** If you earn wage plus bonuses, then you have 2 options. You can just input your wage and not include your bonuses .

To include your bonus income, you must be with the same employer for at least 2 years. To include bonus income, a lender will use a 2 year average of your income. This average would be based on your T4 income or your income Tax Return Notice of Assessments ( line 150 average over the last 2 years )

**Hourly Employees:** If you are an hourly employee, then to calculate your annual income you would include your hourly rate and weekly guarantee hours .

Let ‘s say your earn $ 25/hour. You are guaranteed 37.5hours per week. In this subject, you would multiply $ 25/hour by 37.5hours per workweek and then multiply by 52 weeks. $ 25 x $ 37.5 x 52 equals $ 48,750 per year .

You would input $ 48,750 into the mortgage pre-approval calculator .

The maximum hours a lender will use in this calculation is 40 hours per week. If you are guaranteed 44 hours per week, then use 40 hours in your calculation .

If you want to include extra hours, then a 2 year average would be needed. A 2 class average is calculated by taking your T4 income or Income Tax Notice of Assessment ( agate line 150 ) income for the most recent 2 years .

**Hourly plus overtime:** If you earn overtime and want to include this in your calculation, then you want to calculate your last 2 class average .

Let ‘s assume that you earned $ 65,500 final year and $ 62,000 the year earlier. The 2 year average is $ 63,750. remark that act into the mortgage pre-approval calculator above .

**Casual Employee:** If you are a free-and-easy employee, then you wo n’t have guaranteed hours. In this lawsuit, a lender will want a 2 class average of your income .

You must be with the lapp employer to calculate a numeral that is accurate. Like in the previous examples, a 2 class average is calculated by taking your taxable income in the last 2 years and averaging these together .

**Part-time Employee (or 2 jobs): ** If you are a part-time employee, that is you are guaranteed less than 30 hours per workweek. Or, if you have 2 part-time jobs, then you can hush qualify for a mortgage. Lenders will want to take a 2 year average of your income to calculate how much you qualify for .

Like the calculation for casual employees, you must be in both jobs for at least 2 years. You will then average your T4 income or your notice of Assessment Income over the stopping point 2 years. Input this act into the mortgage pre-approval calculator .

**Self-Employed (or Contract Employee):** If you are self employed or you are a abridge employee, where your employer does not take source deductions, they lenders will use a 2 year average of your income .

This mortgage pre-approval calculator is designed to give you a number based on your documented taxable income. As a self employed person there are programs and mortgage options available to you that are n’t available to employees .

If you want more details about these, read this article that we wrote regarding self use mortgage options .

To calculate your average income, use the last 2 years of your income tax returns or Notice of Assessments. Lenders use cable 150 when they average your income .

There are other options, but in my public opinion, if you are freelance connect with us or a mortgage agent. We can help you to explore all your options. Complete your personal details in the middle of the calculator and we can connect .

What Down Payment Should I Input in the Mortgage Pre-Approval Calculator?

If you are n’t sure about how much mortgage you qualify for, then equitable choose 5 %. once you see the consequence, then you can change the amount and the leave leverage monetary value will change .

The calculator will first calculate how a lot mortgage you qualify for. then based on this total and your down payment choose, you will see how much purchase price you can make that wo n’t exceed the mortgage approved .

As you review the results on the right side, you can see that the Default Insurance Premium is besides included. When your down requital increases from 5 % to 10 %, the default option insurance premium goes devour. consequently with a bigger down requital and lower mortgage policy premium, your leverage price goes up .

What Interest Rate Should I Input into the Mortgage Pre-Approval Calculator?

The pastime rates vary from day to day. They besides vary based on the down payment you provide. many lenders besides offer different rates based on the other criteria. consequently, we do not provide accurate current rates here.

If you want to know current rates, completed your reach details in the middle section and we can review programs, rate promotions and other options available to you .

What Mortgage Term Should I Input in the Mortgage Pre-Approval Calculator?

The term is there to allow you to see how much your mortgage balance would be after 1 to 5 years. Most people choose a 5 class term, but you can choose any term .

If you are interest in knowing how much principle you have paid off after 1 year, or 2 years, etc., then change the term to 1 or 2 years, etc. and see the resultant role at the bottom right field of the calculator results .

A principle and pastime requital and entire housing costs is authoritative to know sol that you can do some budget .

It ‘s besides courteous to know how cursorily ( or slowly ) your mortgage is being paid down based on these payments .

What Amortization Should I Input into the Calculator?

The calculator allows you to choose an amortization from 5 years to 25 years. Lenders will qualify you for a mortgage based on 25 years unless you have 20 % down or more .

For the purposes of this calculator, the utmost amortization you can choose is 25 years .

If you have 20 % down or more and want to know how much you qualify for based on a 30 year amortization, then complete the contact details in the center of the calculator. We can connect and review your numbers .

What Property Tax Amount Should I Input into this Mortgage Pre-Approval Calculator?

The property tax owing for any property will be based on the municipality where you live. If you are uncertain of the sum to include, then leave it at $ 1,000 for your first calculation .

once you see the leverage price, that you could potentially qualify for, then change the place tax to 1 % of that sum .

Every city is different, if a lender does n’t know what the property taxes will be, then they will assume 1 % of the purchase price. That ‘s a fair count to use for these purposes .

What Condo Fee should I input into the Calculator?

If you are n’t purchasing a condominium, then leave this at zero .

If you will be purchasing a condominium, then you could give an estimate based on the type of place you are concern in buy …

**Townhouse Style Condo:** I would use $ 150 to $ 200 per calendar month as an estimate for this type of place

**Apartment Style Condo:** I would use $ 300 to $ 400 per calendar month as an estimate for this type of property .

These are equitable estimates, until and unless you have narrowed down your search, these numbers will work for now .

What should I input for the Credit Card & LOC Balances Section of the Mortgage Pre-Approval Calculator?

For this section of the calculator add up all outstanding balances that you keep on your accredit cards or lines of credit each calendar month .

If you use your credit cards and pay them off to zero each month, then type in “ 0 ”. If you pay off your credit cards but keep a balance wheel on your pipeline of credit of $ 5,000 then add “ 5000 ” to this section .

The calculator will determine the minimal payment that you are required to make based on the balance that you input. The qualifying mortgage sum is then calculated based on all the input including your credit wag and telephone line of credit debt .

You will noticed that you can have a credit batting order balance without any consequence on the approve mortgage measure. Once you increase the poise over a certain number, then qualifying mortgage sum decreases .

Play around with the numbers, it ‘s fun to see how different revolve balances will change the results .

What should I input for the Total Monthly Loan & Lease Pmts of the Calculator?

For this department you should include the monthly payments that you make for any personal loans or vehicle loans or leases .

If you have a car lease that is $ 325 per month, then input “ 325 ” .

If you have a personal lend with a payment of $ 275/month and a car loan ( or lease ) with a payment of 325/month, then add these two numbers in concert. $ 325 plus $ 275 equals $ 600, then input 600 .

sometimes you have loanword or lease payments that are paid every 2 weeks, called bi-weekly. If you debt payment is bi-weekly, then you have to convert that payment to monthly .

To convert a bi-weekly payment to monthly you must multiply the bi-weekly requital by 26 and divide by 12 .

here is an case, you have a bi-weekly payment of $ 230. To convert this payment to monthly reproduce by 26 and divide by 12. consequently, $ 230 multiplied by 26 and divided by 12 equals $ 498.33. You could type in 498 or round up to 500 .

Notice that a bi-weekly requital of $ 230 is not $ 460 per calendar month. You can type in 460 if you wish, then look at the result. then type in 500 and look at the solution. Is it unlike ?

sometimes the payments will affect how much mortgage you can qualify for and sometimes they do n’t. This difference truly depends on your income and the sum amount of the payments that you must make each calendar month .

Conclusion

Our mortgage pre-approval calculator is a tool that you can use to get an idea about how a lot you can qualify for. This is by no means an approval.

Read more: How To Calculate Your Mortgage

To be confident that you can shop for a home in a certain price range, then you should connect with function. We will review your citation report, review your income documents, find you the best mortgage available and let you know precisely how much you can qualify for .

If you have questions about how to qualify or what you specifically qualify for, connect with us by completing the calculator and your personal contact details .

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