Are you financially ready to buy a new home?

How can you know if you are financially ready to become a homeowner?

This step guides you through some simple calculations to figure out your current financial situation, and the maximum home price that you should consider.

How Much are You Spending Now?

Calculate Your Household Expenses

Start figuring out your financial readiness by evaluating your present householdbudget. How much are you spending each month? Knowing exactly how much, will give you a better idea about whether you can afford to become a homeowner.

The Current Household Budget worksheet helps you take a realistic look at your current monthly expenses.

Or, you may also use the CMHC Household Budget Calculator to complete your current household budget now.


Your Maximum House Price

The maximum home price that you can realistically afford depends on a number of factors. The most important factors are your household gross monthly income, yourdown payment and the mortgage interest rate. For many people, the hardest part of buying a home — especially their first one — is saving the necessary down payment.

Note: For CMHC-insured mortgage loans, the maximum purchase price or as-improved property value must be below $1,000,000.

Calculate Your Maximum House Price

Use the compounded semi-annually not in advance. The interest rate is fixed for the term of the mortgage. The interest rate is usually renegotiated at the end of the term of the mortgage.

  • Minimum down payment may vary.
  • These calculations are approximate. They do not account for the payment ofCMHC Insurance Premiums, applicable sales taxes, closing costs, or other fees that may be required.
  • CMHC Mortgage Calculator is for general illustrative purposes only. The amounts it projects are based upon assumptions and estimates made according to generally accepted principles for mortgages in Canada. CMHC cannot guarantee the projections. Actual payment amount must be obtained from your lender. Neither CMHC nor any of its advisors shall have any liability for the accuracy of this information.

    source: Canada Mortgage & Housing Corporation

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