Mortgage Payments Must Fit Your Income

Before you start looking for a unit, you should know what you can afford according to your income. As a rule, your mortgage monthly installment cannot be more than 50% of your income on your monthly debts.

This means you can only use half of your income to pay towards your debts. To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. This number is one-way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

How to lower your mortgage payments to fit your income?  you can Extend Your Mortgage Term, choosing a longer mortgage term spreads your loan balance over more total payments, reducing the amount of each payment. But remember, extending your term comes at a cost, as you’ll ultimately pay more in cumulative interest over the life of your loan. Or you can make a Bigger Down Payment, the bigger your down payment, the lower your loan amount and smaller monthly payments.

Run your numbers through a mortgage calculator before you start looking for a unit so you can see what's in your budget.

 

Go to our affordability calculator here

Or Talk to us to know how much you can afford according to you income

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