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SARNIA AFFORDABILITY CALCULATOR

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Can You Afford a Home in Sarnia?
Scenario
Left to Save / Month
$1,000
after rent + costs
Time to Min. Down
25 mo
$25,000 at 5%
Qualify at Min. Down?
No
Stress test 7.20%
Savings Trajectory
5% min — $25,000
Qualify — $330,000
20% down — $100,000
Mortgage at 5% Down ($25,000)
Mortgage Amount
$494,000
CMHC Insurance
$19,000
Monthly Payment
$2,890
Monthly Carrying Cost
Mortgage payment$2,890
Property tax (est.)$400
Heating (est.)$150
Total Monthly $3,440
Housing costs as % of gross income 76.4%
Lenders cap housing costs at 39% of gross income
Income
Annual Gross Income$54,050
Monthly Take-Home$3,500
Starting Age25 yrs
Monthly Expenses
Monthly Rent$1,500
Food, Phone & Basics$1,000
Left to Save $1,000/mo
Home & Mortgage
Home Price$500,000
Down Payment5% — $25,000
Interest Rate5.2%
Amortization
Stress test: 7.20% (contract +2% or 5.25%)
Canadian mortgage rules applied (semi-annual compounding). Qualification uses 39% of gross income less estimated property tax and heating. Property tax estimated at 0.96% annually. CMHC insurance applies below 20% down. Stress test is contract rate +2% or 5.25%, whichever is greater.