The first step in buying a property is knowing the price range within your means. You can get an estimate for this amount through a mortgage pre-qualification, or for more certainty, a mortgage pre-approval.

A mortgage pre-qualification is a rough estimate of your borrowing capacity to purchase a property. It’s calculated based on your basic financial information such as your income and current debt. No credit check is involved, nor is it a guarantee of the approved financing which you may receive by a bank.

A mortgage pre-approval certifies your borrowing capacity based on several criteria including your credit rating. It confirms the amount that a bank agrees to lend you under certain conditions and protects the rate of this loan against potential rises for 90 days. A pre-approval demonstrates your seriousness to sellers and your real estate agent and does not impose any obligation for you to commit to the loan.

The amount of mortgage you can afford will depend on several factors. These include: income, credit score, debt to income ratio, and the current interest rates available on the market.

To get a full idea of how much mortgage you can afford, try our mortgage calculator below, or get in contact with one of Sherwoods award winning mortgage agents!