Determine how much mortgage you can afford based on your income, expenses, and current interest rates.
TD Mortgage Affordability Calculator - Key Features
Input Fields
- Annual Income: Your total yearly gross income before taxes and deductions.
- Monthly Expenses: Your fixed monthly expenses including car loans, credit card payments, and other debts.
- Interest Rate: The annual interest rate for your mortgage (check current TD rates).
- Loan Term: The amortization period for your mortgage in years.
Calculation Logic
The TD Mortgage Affordability Calculator uses the 32% rule - your housing costs (including mortgage payments)
should not exceed 32% of your gross monthly income.
How It Works
- Enter your financial details (income, expenses, interest rate, and loan term).
- The calculator determines your available monthly income for housing costs.
- It calculates the maximum mortgage amount based on standard lending criteria.
- Results show your affordability along with key financial ratios.
Example Calculation
Input:
- Annual Income: $85,000
- Monthly Expenses: $1,200
- Interest Rate: 5.25%
- Loan Term: 25 years
Result: Maximum mortgage of approximately $356,000
Breakdown:
- Monthly Income: $7,083
- 32% of Income: $2,267
- Available for Housing: $2,267 - $1,200 = $1,067
- Maximum Mortgage: ~$356,000 at 5.25% over 25 years
Important Considerations
- Property Taxes: Not included in this calculation but will affect your total housing costs
- Home Insurance: Required by lenders and adds to monthly costs
- CMHC Insurance: Required for down payments less than 20%
- Maintenance Costs: Budget 1-3% of home value annually for repairs
- Emergency Fund: Maintain 3-6 months of expenses in savings
- Other Debts: Total debt service ratio should not exceed 44% of income
This calculator provides estimates based on standard lending criteria. For official pre-approval and
current TD mortgage rates, contact TD Bank directly or visit a TD branch to speak with a mortgage specialist.