Find out how much you can afford when buying a house or condo
Before you start looking for your dream home, let’s find out how big you can dream. Knowing your budget is the first and most important step in buying a home.
A home is a big purchase
It’s probably the most expensive thing you’ll ever buy, and there are lots of expenses you might not even know about. To find out full details on what you’ll need please CLICK HERE to find out.
Everybody’s total costs are different, but it’s almost guaranteed you won’t have that much money saved up. Hopefully you have enough for a nice down payment, but for the rest….
Yes, you need a mortgage. So determine how much a bank will lend you
Head over to the next step where you’ll find helpful tips on arranging your mortgage. But the first step in determining how much a bank will lend you is to understand how much you can afford each month. This is determined using two lending principals.
Gross Debt Service Ratio (GDSR) calculation
This lending principle simply states that your monthly housing cost should not exceed 32% of your gross monthly family income.