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Borrowing limits for prospective home-buyers

It’s no surprise that buying a home is most likely one of the largest expenses you’ll make in your lifetime. While it can certainly be a very exciting time, it’s not something that should be pursued without doing some research first. Before diving into such a significant financial investment, take a step back and do your homework to determine your ideal budget.

Why prequalification is important

Finding out an estimate of what mortgage amount you’ll likely qualify for is a smart move to make early on in your home-buying process. This enables you to have a more realistic idea of how much home you can afford, and therefore helps you target your property search in a much more effective manner. For instance, you can more easily focus on homes in your price range, rather than set your sights on properties to only later discover that they may have been outside of your budget.

Prequalification factors

A number of characteristics are taken into account when working out your mortgage eligibility. These include factors such as:

  • The amount of debt you have
  • The interest rates being offered
  • The possible duration or term of the mortgage

The prequalification process

Mortgage lenders will often help you calculate what size mortgage you can afford. Feel free to inquire about the process and don’t be shy to schedule a meeting to have this conversation. You can certainly head in to any TTMF branch and we’d be happy to assist you. We just ask that you bring the following documents with you so we can be more accurate with our calculations:

  • Photo Identification (e.g. Driver’s License, ID card, Passport)
  • Job Letter
  • Most recent payslip

If you’re not ready to have an in-person conversation, you can also run the numbers yourself right at home by using an online mortgage calculator, such as the TTMF Mortgage Principal Calculator which you can find on our website here.

Your prequalification amount will strongly guide your home purchase. We encourage you to consider the above information to help you discover how much you can afford to spend on your mortgage and enable you to be a more informed consumer.