Three Hacks to Determine Max Mortgage Amount

The first question clients ask me when applying for a mortgage is

"How much money will a lender give us?"

The answer to this question is based on many factors. Here are three hacks to help discover the maximum mortgage amount available!

HACK 1 - Math Equation

The first hack is an extremely simple math equation. It is designed to give an estimated figure based solely on household income. Income is a major contributor in determining the maximum mortgage amount however it is not the only factor and this method should only be used as a guideline.

Household income X 4.75 = Potential maximum mortgage amount.

Example:

$100,000/y X 4.75 = $475,000

Remember this is the maximum mortgage amount and not the maximum purchase price.

Max purchase price = max mortgage amount + Downpayment.

Hack 2 - Kirk's Mortgage Smartphone App

Check out my mortgage app for smartphones. It can be downloaded by clicking here

There is a calculator inside called "Stress Test". This calculator will give an accurate idea of what a maximum mortgage amount will be.

There are also several other powerful calculators that will help understand other aspects of mortgages.

• Pre-Qualification

• Purchase

• Land Transfer Tax

• Closing Cost

• Comparing side by side

• GDS/TDS

Hack 3 - Call Me

The best way to determine how much mortgage money is available is by speaking with a professional.

In this conversation, we will review property type, income, debts & liabilities, assets and down payment. When completed there will be a clear and accurate picture of all financing options. This call is designed to help determine when is a good time to proceed with a mortgage application.

To book a call directly into my calendar please click here.