Quick answer
On a $549,000 freehold townhome with 20% down, the mortgage is about $439,000 — roughly $2,430 a month in principal and interest at a 4.5% rate over 25 years, plus property tax and heating. Lenders qualify you at the contract rate plus 2% or the benchmark rate, whichever is higher.
The inputs
Purchase price, down payment, mortgage rate, amortization, property tax and heating are the variables lenders use. On a freehold town there is no condo fee to add to the debt-service calculation, which improves qualifying capacity relative to a condo at the same price.
A worked example
On a $549,000 purchase with 20% down, the mortgage is roughly $439,000. At a 4.5% five-year rate over 25 years, principal and interest come to roughly $2,430 per month, plus property tax and heating in the qualifying calculation.
Stress test
Lenders qualify you at the greater of the contract rate plus 2% or the benchmark rate. Ask your broker to run the qualifying number, not the payment number — they are different, and the qualifying number is what determines approval.
One caution
Approvals obtained today are not guaranteed at a closing eighteen months out. Keep credit and income stable through the construction period.
Pricing referenced above is preliminary VIP pricing and subject to change without notice. We do not represent the builder. Register below for the official Crown of Caledon price list and floor plans.
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