Mortgage Qualifier Tool Basics

When you’re working on getting a mortgage, there are several ways to improve your chances of getting one. There are also many online tools that can be used to give you a better idea of what your future mortgage payments would look like. 

Mortgage qualifier tool

The Financial Consumer Agency of Canada has a mortgage qualifier tool that can be used online for free. It is a calculator that can help determine whether or not you would qualify for a home mortgage. It uses the information that you provide about your income and expenses to do so. 

To use this calculator, you should provide some information about the property of interest. This includes information such as the value of the property, down payment amount, amortization period, and annual interest rate. Don’t forget about the payment frequency and the term. 

Next, enter your income information and the numbers involved in your anticipated expenses. These amounts pertain to your gross income, property taxes, heating costs, car payments, as well as other debt payments. Additionally, ensure that you include the amount and frequency of your credit card and line of credit payments. 

Mortgage calculator tool

Another useful online tool that can help you with your mortgage is the mortgage calculator tool. This can be used once you’ve determined that you qualify for a home mortgage in the first place. 

The mortgage calculator helps you figure out your mortgage payment amount and your payment schedule. With this information, you can get an idea of how much you would be paying and how long you would be making your payments. Additionally, the tool lets you know the number of years that can be saved if you decide on making prepayments. 

To get started in using this online tool, make sure that you have your mortgage documents ready. Enter the information pertaining to your mortgage amount, interest rate, payment frequency, term, and amortization period into the first calculator to get an idea of your payment plan. 

If you would like some information about a potential prepayment plan, then provide information about your prepayment amount, frequency, and starting payment in the second calculator. 

Budget planner tool

Don’t underestimate the power of a budget planner, either. With a budget planner tool, you can get a better understanding of your funds and spending habits. Make sure you’re honest with your answers when using this type of tool as well, as this can result in better-personalized tips and suggestions. 

The free budget planner provided by the Financial Consumer Agency of Canada asks you questions about your life situation, age, employment status, home, as well as your budget goal for starters. 

Next, you should enter information about your income, expenses, and savings. While income pertains to your net income, rental property amount, as well as education savings and loans, your expenses can be a longer list. Expenses can include, for example, housing, food, insurance, communication methods, education, transportation, personal care, and recreational activities. 

Don’t forget to have the information about your savings at hand. Your savings may encompass funds for emergencies, retirement, education, renovations, car purchases, and income tax. 

After providing all of this information, you will receive a summary of your budget, as well as a chart that can help you visualize your spending and savings. When you’re ready, you can visit the next page to receive some suggestions in terms of your next steps.