Lenders will want to take a 2 year average of your income to calculate how much you qualify for. Or, if you have 2 part-time jobs, then you can still qualify for a mortgage. Part-time Employee (or 2 jobs): If you are a part-time employee, that is you are guaranteed less than 30 hours per week. Like in the previous examples, a 2 year average is calculated by taking your taxable income in the last 2 years and averaging these together. You must be with the same employer to calculate a number that is accurate. In this case, a lender will want a 2 year average of your income. Input that number into the mortgage pre-approval calculator above.Ĭasual Employee: If you are a casual employee, then you won't have guaranteed hours. Let's assume that you earned $65,500 last year and $62,000 the year before. Hourly plus overtime: If you earn overtime and want to include this in your calculation, then you want to calculate your last 2 year average. A 2 year average is calculated by taking your T4 income or Income Tax Notice of Assessment (line 150) income for the most recent 2 years. If you want to include additional hours, then a 2 year average would be needed. If you are guaranteed 44 hours per week, then use 40 hours in your calculation. The maximum hours a lender will use in this calculation is 40 hours per week. You would input $48,750 into the mortgage pre-approval calculator. In this case, you would multiply $25/hour by 37.5hours per week and then multiply by 52 weeks. Hourly Employees: If you are an hourly employee, then to calculate your annual income you would include your hourly rate and weekly guaranteed hours. 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) To include bonus income, a lender will use a 2 year average of your income. To include your bonus income, you must be with the same employer for at least 2 years. You can just input your salary and not include your bonuses. Salaried plus bonuses: If you earn salary plus bonuses, then you have 2 options. Then you would input $72,000 into the calculator. Let's say your salary is $6,000 per month. Salaried Employee: If you are a salaried employee, then you would input your annual salaried income before income tax is paid. Scroll through here to see which applies to you. Let me explain how to calculate your income (the way a lender would consider it). If you are a couple purchasing together then add your incomes together and input in this field. The first and most important field to input is our mortgage pre-approval calculator is your income. We make it easy - use our easy online application, call us, click on the chat bubble, or drop by one of our store locations.12 Video Tutorial How To Use The Mortgage Pre-Approval Calculator? Our highly-trained True North Mortgage brokers will quickly help you get a solid idea of the price-ranges of homes or properties you can scope out.Īnd, you'll be able to hold your best rate (for which qualify) for up to 120 days, to help give you peace-of-mind while you look for the right home. We can help you look for a home that you can (responsibly) afford. Here's our Mortgage Checklist for documents you may need to provide for your quick pre-approval. If you're a first-time home buyer, there may be programs and rebates available to help soften the financial blow.A pre-approval gives you more accurate numbers (vs a pre-qualification).Mortgage rate that you qualify for (according to the latest federal stress-test regulations).Your maximum mortgage amount is usually determined by: What factors can affect your mortgage affordability? Once you provide a few details about your financial situation, our expert True North Mortgage brokers can outline your home-affordability situation, and offer advice on getting your best rate and right mortgage fit (in your preferred language) to help you save thousands. The first step in getting your true numbers is to apply with us. An estimate on how much you can borrow is an important part of setting your budget. Try out our Affordability Calculator for a quick idea of what size of home you may be able to afford. For the house you can afford, save money and time - with us.
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