House for sale with zero commission directly by the owner
 

Goal
BUYERS
SELLERS
 

 Affordability

Most potential owners need a mortgage to buy their house. How much to borrow? What down payment must be invested?

Ideally, it is advisable to calculate 25% of the price of the house down payment. Thus, your monthly payments are the minimum and you pay off your debt faster.

Less than 25% cash, your loan must be insured. Your financial institution will advise you regarding the insurance.

Normally, payment of a house should not go beyond 30% of net income of a family.


Take the example of Simon. His gross income amounted to $ 40 000, less a tax of $ 14 000, it remains $ 26,000 (net income). Dividing net income by 12 months and multiply it by 30%.

26 000 $ / 12 = 2 166 $ X 30 % = 650 $

This is the maximum payment that month should spend at his house.


Using the table below, you can calculate the maximum price of your purchase. The calculation is based on an amortization period of 25 years. Apply the X-factor interest rate offered by your financial institution.


Calculating the cost of buying up a house
Formula to use Your calculations Example
Gross monthly income of spouses
  $
4 000 $
Multiplied by 30%
X $
X 0.3
Maximum monthly amount
= $
= 1 200 $
Minus monthly taxes
- $
- 250 $
Less monthly heating and electricity
- $
- 175 $
Maximum monthly mortgage payment
= $
= 775 $
Divided by the factor X
÷ $
÷ 0.00796
Mortgage amount available
= $
= 97 362 $
Add your down payment (25%)
+ $
+ 24 340 $
Your maximum purchase price
= $
121 702 $


Table X Factor
(Amortization period of 25 years)
percentage interest rate X Factor
6,00 % 0,00640
6,50 % 0,00670
7,00 % 0,00701
7,50 % 0,00732
8,00 % 0,00764
8,50 % 0,00796
9,00 % 0,00828
9,50 % 0,00861