First time home buyer pre approval calculator

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Mortgage Affordability Calculator by Payment

Prequalifying for a mortgage is a helpful step if you’re looking to buy a home. Usually, a mortgage broker or lender may prequalify you by assessing your credit rating and income information.

Using PropertyNest’s mortgage calculator can give you a good idea of how much you might be prequalified for and what your monthly mortgage payments, closing costs, and monthly taxes might look like.

How Do I Use PropertyNest’s Mortgage Calculator?

Finding out how much you might be able to afford is as simple as entering your income and credit score range. Customize your breakdown to a particular property by entering property tax and HOA information if you have it.

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Understanding What a Prequalification is

A mortgage prequalification is something you work through with a lender or bank. Going through the process will help the lender determine if you have the necessary criteria in terms of income, credit, and debt. It can be an eye-opening step to not only deem if you are ready to buy, but how much you can actually spend.

How is Prequalification Determined?

Looking at income is just one of the components that is used to determine your buying power. Your monthly debt gets used as true measure against your monthly gross income when it comes to financial institutions. Most lenders feel comfortable with applicants who have less than a 36% debt-to-income ratio or a DTI. PropertyNest’s Prequalification Mortgage calculator also factors in the DTI to approximate your buying power.

Preapproval Versus Prequalification

Preapproval and prequalification sounds like nearly the same thing. They are actually similar, but preapproval is a much more crucial step when you want to be one step closer to purchasing your home. With a preapproval letter from a bank, you can make a serious offer on a property, showing that you are a buyer with credentials and have passed the first serious step in obtaining a mortgage. The preapproval process is much more official than prequalification and involves pulling your credit and submitting pay stubs and other income documentation. The prequalification and preapproval process can take just one day depending on how quickly you can get your information and documentation the lender. However, a prequalification is more informal, whereas your preapproval letter is good for about three months, after which point you may have to submit paperwork again.

How You Can Improve Your Prequalification

You can get prequalified for a bigger mortgage by improving on your credit score if that’s the factor that is holding you back. Some of them can be simple fixes such as paying down balances and any open collections. If your credit is suffering from repeated late payments or bankruptcy, you may have to wait for some time for improvement. If income is holding you back, you can try ways to increase your income or improve your debt-to-income ratio by paying down your debts.

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How much can you afford?

Use our calculator to get an estimate on your price range that fits your budget, along with mortgage details.

Let's start with the basics

You didn't enter a valid income amount. Enter an income between $1,000 and $1,500,000.

You didn't enter a valid down payment amount. Enter a value between $1,000 and $4,700,000. You didn't enter a valid down payment amount. Enter a value between $1,000 and $4,850,000.

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You didn't enter a valid amount for loans. Enter a value between $0 and $100,000 using numbers only.

You didn't enter a valid amount for total credit owing. Enter a value between $0 and $300,000 using numbers only.

You didn't enter a valid amount for condo fees. Enter a value between $0 and $100,000 using numbers only.

Your affordability estimate

Monthly mortgage payment

Tip: Consider increasing your down payment to to qualify for a maximum purchase price of approximately

Edit your mortgage term and other expenses (optional)

You didn't enter a valid interest rate. Enter a value between 0.10% and 20% using numbers only.

You didn't enter a valid amount for monthly property tax. Enter a value between $0 and $100,000 using numbers only.

You didn't enter a valid amount for monthly heating cost. Enter a value between $0 and $100,000 using numbers only.

Tip: Keep in mind you may need to pay other monthly costs as a homeowner, such as home insurance, utilities, phone, cable and internet.

What your purchase price includes

Includes:

Mortgage default insurance4

Tip: Set aside about 2% to 4% of your purchase price for closing costs.

Next steps

Apply now to get pre-approved or request a call from one of our Mortgage Advisors. They'll guide you through the next steps.

† Calculator applies to residential mortgages only. Results are approximate and for illustration purposes only; do not rely on this information when making financial decisions; visit your CIBC Banking Centre or speak with a CIBC Mortgage Advisor.

Results are based on the information you provide, estimates and assumptions on which pre-filled amounts are based, and interest rates which, for purposes of the calculation, are assumed to remain constant throughout the term. Actual rates may vary and will affect the amount you can borrow.

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How is your pre

In general, your pre-approval amount is based on your debt-to-income ratio, your down payment amount, and your FICO score.

How much do I need to make for a 300K mortgage?

To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, the type of home loan, loan term, and mortgage rate.

How much mortgage can I qualify for based on my income?

The general rule is that you can afford a mortgage that is 2x to 2.5x your gross income. Total monthly mortgage payments are typically made up of four components: principal, interest, taxes, and insurance (collectively known as PITI).