How Much Can You Afford?
Ready to take control of your financial future? Discover expert tips to boost your credit score and learn how it’s calculated. Navigate the complexities of down payments and deposits, and compare the pros and cons of variable vs. fixed interest rates. Find out how mortgage brokers can simplify your journey, and get the full picture of what buying and owning a home will really cost you. Your dream home is within reach—start your journey with confidence!
What's Your Credit Score?
As of July 2021, at least one person qualifying for a mortgage will now require a credit score of at least 600, down from the previous 680.
Your credit score is a key factor when determining the rate of your mortgage, a higher score will help lower your mortgage rate. Even a few points will have a big impact on the lifespan of your loan.
A lower interest rate can also offer you more purchasing power to help you purchase the home of your dreams.
What Affects It & How Do I Improve It?
Get Pre-Approved BEFORE you start looking at homes.
Looking at homes before getting pre-qualified can be disappointing if you can't afford the one you want. You also can't make an offer until you're pre-qualified, which tells you how much you can borrow and your interest rate. Pre-approval gives you a general idea of what you might qualify for, helping you focus your search and be ready to make an offer.
Deposit vs Downpayment
Downpayment
The down payment is the amount you spend out of pocket on the purchase of your home. It's very important that you have the money quickly accessible when buying a home, as part of it in the form of a down payment is typically required upon acceptance, and the remaining on close.
Variable vs Fixed Interest Rates
What are Interest Rates?
Interest rates are the cost of borrowing money, set by the Bank of Canada, which adjusts the benchmark rate several times a year. These changes influence mortgage rates, affecting your monthly payments and the overall cost of your loan.
Home Purchase Costs
Title Insurance
Title insurance acts as a safety net for your property ownership journey. It shields you from potential risks like fraud or forgery that could threaten your rights to your home. In essence, it ensures that you can confidently enjoy your property without worrying about any unexpected challenges to your ownership.
Home Ownership Costs
The cost of owning a home.
01
Mortgage Payments
When considering how much home ownership will cost, the monthly mortgage payments are typically the first thing you think of.
03
Utilities
Utilities vary person to person depending on consumption, however some key ones are water, hydro, gas, internet
05
Upkeep / Repairs
It's always a smart idea to have money put aside for when you inevitably have to work on your home. This could include a kitchen reno, an unexpected window repair, or replacing the shingles on your roof.
02
Property Taxes
The amount you pay in property tax is determined by the current value assessment of the property, and multiplies it by the combined municipal and educational tax rates for the applicable class of property. This is typically paid quarterly.
04
Home Insurance
Home insurance protects you against things such as fires, floods, and thefts that might cause damage to your home and possessions.
Condo Fees
If you purchase a condo, you will have to contribute money to the reserve fund to maintain the condo. The condo board determines the monthly payment.
