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John Gray

Broker
100% Club, ABR, Broker, RE/MAX Hall of Fame
Mobile:(613) 868-6068
Fax:(613) 283-3888

Smiths Falls Office

59 Beckwith St N,
Smiths Falls ON
K7A2B4
CA

How Much Do I Qualify For?

If you have any questions or would like more information about how much you qualify for please Contact Us. If you are planning on buying or selling a home or property visit our Buyers Page or Sellers Page and we will be happy to help you.

How Much Do You Qualify For?When buying a home, it is helpful to determine the type of home you'll like and how much you can afford before beginning your search. Most lenders allocate approximately 28% of your GROSS MONTHLY INCOME to housing expense. To get an idea of how much you can afford to pay each month for a home, multiply your gross monthly income by 28%.

When coupled with current outstanding loans, the total for your debt service should not exceed 36% of your gross monthly income. Some lenders may have slightly more liberal requirements or loan interest rates which may increase your purchasing power.

Mortgage interest, property taxes, loan fees or "points" are currently tax deductible (up to allowable limits). Points are generally deductible in the year paid. A point equals 1% of the mortgage amount. If you are in the 28% tax bracket, this is equivalent to receiving a 28% discount on your mortgage interest and property taxes. During the first years of the mortgage your tax savings are especially high because most of your monthly payment goes toward loan interest.

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Smiths Falls Office
59 Beckwith St N
Smiths Falls ON  K7A2B4
(613) 283-2121