Great things to know before you start house shopping.
You can rely on your credit union for a lot of different things, but don’t bank on us telling you how much you can afford to spend on your new home. That decision’s up to you. We’ll tell you how much you’ll qualify to borrow for your mortgage – but that’s not the same thing as how much you can afford.
You don’t need to spend every cent we’ll lend you. In fact, there are some serious advantages to buying only as much house as you need.
Home ownership comes with expenses other than your mortgage payments. If your roof’s falling through or your furnace fails, you need money available to get repairs done. That’s one reason you shouldn’t have your mortgage payments suck up all your money, but there are others.
You have a life outside your home. The less money you spend on your mortgage each month, the more you can spend on nice things, like a vacation somewhere warm, a new car, or your retirement savings. Home ownership’s no fun at all when your mortgage payments are hard to manage and put a damper on your lifestyle.
A mortgage small enough to give you financial breathing room can also help protect you from life’s hurdles and hiccups. If you lose your job or a family member gets sick, a smaller mortgage gives you the wiggle room you might need when you don’t have money coming in.
Daycare costs can be a big expense for young families – an expense that may not get considered when you apply for your mortgage. If kids are in your future, keep that cost in mind. You can easily spend $800 per month for day care for each child.
If you’re wondering exactly how much you can afford, a budget is a great place to start. Knowing what you spend on housing today will help you understand how much you can afford when you buy. Our mortgage calculator can help show what your mortgage will cost you each month.
If you have questions about mortgages, call our Contact Centre at 1.866.863.6237.