As evidenced by the mortgage crisis in the United States, people shouldn’t be given mortgages that they can’t afford. People can sometimes get in way over their heads because they aren’t realistic about what they can actually afford. Just because you can technically scrape together enough money to make a mortgage payment doesn’t mean that you can actually afford it. If you’d like to buy a house, it pays to come up with a number that you can comfortably afford and that leaves room in your budget for house maintenance and other expenses. Whatever your budget may be, as an experienced Mississauga real estate agent, I can help you find the perfect home.

How Much Do You Earn?

The first step to determining what kind of mortgage you can afford is calculating how much you earn. Like most people, your monthly income is probably fairly consistent. If it tends to fluctuate, add up your monthly totals for the past year and divide the total by 12 to arrive at an average. If you have income from other sources that you expect to continue for the foreseeable future, include it too.

How Much Do You Owe?

When you apply for a mortgage, these same steps will be followed during the process. Sit down and calculate your monthly bills. Make sure to include credit cards, auto loans and things like auto insurance. If your credit card bills tend to fluctuate, come up with an average that’s on the more conservative end of the spectrum.

What is Your Credit Score?

Your creditworthiness will also play a role in how much you can afford to spend. If your credit is sterling, you should qualify for a very competitive interest rate, which will allow you to buy a more expensive house more affordably. If your credit isn’t very good, you’ll have higher interest charges to pay every month, and they will eat away at the total amount that you can ultimately afford.

The most important thing to remember is that you shouldn’t try to buy the most expensive home that you are qualified to purchase. You should buy one that you can comfortably afford. Why live in a very expensive home if it leaves you stressed each month about paying your bills. Whatever your number ends up being, I can help you find a home that suits your needs perfectly. Contact me at 905-502-1500 or visit