How much can you afford?
Buying a house essentially encompasses two key commitments :
1. The amount you can afford as an initial downpayment
2. The monthly mortgage payments you can comfortably carry while still enjoying life.
The table below gives you a general idea of the maximum house price you can afford. The examples are based on an annual percentage rate (APR) of 8%, average property tax and heating costs in Canada, and a 32% Gross Debt Service Ratio (GDSR).
| Household Income | 40 000$ | 60 000$ | 80 000$ |
|---|---|---|---|
| Initial 5% deposit | 5 700$ | 9 300$ | 12 500$ |
| Max. home price | 114 000$ | 186 000$ | 250 000$ |
| Initial 10% deposit | 12 000$ | 19 600$ | 27 200$ |
| Max. home price | 120 000$ | 196 000$ | 272 000$ |
| Initial 25% deposit | 36 000$ | 58 800$ | 81 500$ |
| Max. home price | 144 000$ | 235 200$ | 326 000$ |
