Home Buyers

image of the inside of a home

Are you financially ready?

Compare how much you currently spend on expenses and debt payments with the amount you have saved or invested.

  1. How much can you afford to spend on housing each month without risking your financial health?

  2. How much do you need to save to pay for the upfront costs of buying a home?

  3. Upfront costs include:

    • the down payment

    • home inspection and appraisal fees

    • insurance costs

    • land registration fees

    • prepaid property taxes or utility bills (the buyer reimburses the seller or builder)

    • legal or notary fees

    • potential repairs or renovations

    • moving costs

    • GST/HST/QST on a newly built house or mortgage loan insurance

  4. How much would you be spending each month with homeownership expenses added to your current financial situation?

  5. What is your credit score? You can demonstrate your ability to consistently pay bills and debts with a copy of your credit report.

What is my total budget?

The amount of money you have available (and are willing to spend) are the most important factors when it comes to deciding which home is right for you.

When you’re searching for a home to buy, you should get pre-approved for a mortgage. Having to wait for approval when you’re ready to make an offer may mean someone snatches your dream home out from under you.

But remember:

Getting pre-approved for a mortgage doesn’t automatically mean you can afford it.

In addition to your down payment and monthly payments, you still need to pay for all the other things in life: groceries, entertainment, gas, retirement savings, and so on, not to mention the non-mortgage costs of home ownership.

Speaking of which, those extra costs come in two varieties: one-time costs you’ll pay at closing time, and ongoing costs you’ll pay for as long as you own the home.