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$