The impact of continued employment may cause you to hold off on purchasing a home until after employment is certified. That certification or certainty may be a long time coming. With the present low mortgage rates, you may be surprised on how much mortgage your rental payment can carry. The following table will show some of the required information.

Monthly Rental Dollar Mortgage Amount

$500.00 $ 88,000.00

600.00 103,000.00

700.00 120.000.00

800.00 137,000.00

900.00 155,000.00

(rate of 5%, calculated over 25 years, six month term)

Keep in mind that beyond mortgage payments you must also pay for condo fees (if you purchased a condo), property taxes, heat & light, and insurance.

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The qualifying standards have also been made easier. If you are a first time buyer, the system will allow you to purchase a home that takes up to 35% of your gross earnings to operate. The old standard of 32% (including heat) still exists for subsequent purchasers. That is called Gross Debt Service Ratio. To explain loan amounts in understandable quotients, and given that light, and taxes amount to $3,000.00 per year.

For First Time Buyers Only

Gross Annual Family Income Mortgage Amount

$35,000.00 $115,000.00

45,000.00 158,000.00

55,000.00 182,000.00

The above numbers reflect qualifying standards based on three year term rates at 6.5%. Alternate debt payments must not exceed 5% of gross annual income.

There has never been a better time to buy a home! If you haven't checked on affordability lately, it might be worth your while to set up a prequalifying appointment with your lending institution, or your mortgage broker, you may be surprised on how much house you can afford.