Smart borrowing

You can figure out how much to borrow with the help of an in-branch mortgage representative or a BMO Mortgage Specialist by doing a few calculations.

What's Your Income After Expenses?

The mortgage size is based on your total income minus expenses.

Things to Bring Your First Meeting: It's recommended to always check with your mortgage provider for complete requirements.

1. Your current household income
2. Your current household debts
3. Proof of income
4. Two or three years of financial statements and tax returns, if you are self-employed

Calculate Your Income and Debt

Find out how much you're eligible to borrow by downloading and completing the Income and Debt worksheet below. Download Income and Debt Worksheet (70KB – PDF)

Once you've completed the Income and Debt Worksheet, you're ready to: Mortgage Calculator

Find a mortgage that feels right

The size of a mortgage is based on two numbers: Gross Debt Service Ratio (GDSG D S) and Total Debt Service Ratio (TDS). GDSG D S reveals home costs equaling 32% or less of monthly income while TDS also includes all other debts—like credit cards and other loans—equaling 42% or less of monthly income. GDSG D S and TDS are used as guidelines.

Calculations Made Simple

Let's say you make $60,000 a year. Here's how to calculate your maximum GDSG D S and TDST D S:

Gross Debt Service Ratio (GDSG D S)

1. $60,000/12 months$60,000 divided by 12 months = $5,000
2. $5,000 x 32%$5,000 multiplied by 32% = $1,600

In this case, your maximum GDS would be $1,600.

Total Debt Service Ratio (TDST D S)

1. $60,000/12 months$60,000 divided by 12 months = $5,000
2. $5,000 x 42%$5,000 multiplied by 42% = $2,100

In this case, your maximum TDST D S would be $2,100.

Your GDSG D S and TDST D S ratio calculations must both be within your mortgage provider's guidelines and insurer's guidelines (if applicable).