Everybody’s a little different so there isn’t a one-size-fits-all answer. The best way to gauge what you can afford is to look at what you’re managing right now. Add up all your housing costs – rent, utilities, insurance – and compare that against what you’ll pay for the mortgage, taxes, insurance and utilities on your new home. It’s a good idea to ask the seller how much they pay in taxes and utilities so you’ll know exactly what you’ll be faced with. If the costs of the home you’re considering are a lot higher, affordability could be an issue.
Home ownership means you’re responsible for maintenance as well as repairs. When you’re thinking about how much your new home will cost each month, include contributions to a savings account. That way, if your furnace conks out one day you’ll have the money saved to fix or replace it.
Our mortgage calculator is a great tool to help you understand how much you’re qualified to borrow. The best way to know how much you’ll have to spend is to call our Contact Centre at 1.866.863.6237 for advice on getting preapproved.
There’s a difference between what we’ll lend you and how much you can afford. It’s your decision how much you can afford and we’ll make sure you’re fully aware of how much you’re qualified to borrow.