A home is a big purchase. It's probably the most expensive thing you'll ever buy, there are lots of expenses you might not even know about. Some of them include:
ONE TIME COSTS;
Down Payment, Legal Fees, Title Insurance, Inspection Fees, Property Transfer Taxes.
PLUS MONTHLY COSTS;
Mortgage, Utilities, Maintenance Insurance and Property Taxes.
Everybody's total costs are different, hopefully you have enough saved for a nice down payment. So you will probably need a mortgage and you should determine how much a bank will lend you. Your Gross Debt Service Ratio is where your monthly housing cost should not exceed 32% of your gross monthly family income. Your Total Debt Service Ratio is where your monthly housing cost and payments on all of your other debts (including loans, credit card and lease payments) should not exceed 40% of your gross monthly income.
Log onto www.howrealtorshelp.ca for more information regarding helpful tips on arranging your mortgage and use their "what you can afford calculator" to help you easily estimate your maximum affordable mortgage payment of principal and interest.