RBC Mortgage Affordability Calculator
Introduction & Importance
Mortgage affordability is a crucial factor when considering homeownership. Our RBC Mortgage Affordability Calculator helps you understand how much you can afford, making the home-buying process more manageable.
How to Use This Calculator
- Enter your annual income.
- Enter your total debt.
- Enter your down payment.
- Select an interest rate.
- Select an amortization period.
- Click ‘Calculate’.
Formula & Methodology
The calculator uses the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine affordability. GDS should not exceed 32%, and TDS should not exceed 42% of your gross income.
Real-World Examples
Data & Statistics
| City | Average Price |
|---|---|
| Toronto | $1,095,000 |
| Vancouver | $1,230,000 |
| Montreal | $520,000 |
Expert Tips
- Consider your budget, not just what you’re approved for.
- Factor in property taxes and insurance.
- Regularly review and update your calculations.
Interactive FAQ
What is Gross Debt Service (GDS)?
GDS is the amount you spend on housing-related costs, including mortgage payments, property taxes, and heating, divided by your gross income.