Before you even start looking for a home, you need to know exactly how much home you can afford – otherwise, you could spend time looking at homes that are out of your price range. If that happens, it's hard not to be disappointed later when you view less expensive homes.
To get an idea of what you can afford, you'll need to take into account the following:
- Your down payment
- Your household income
- Your current debts (liabilities) and your monthly payments associated with those debts
- Your estimated monthly housing-related costs, including mortgage payment, property taxes, property insurance, condominium fees, school taxes, utilities and maintenance costs
- Your anticipated closing costs and other one-time costs
- Your current spending practices
Look closely at ALL your expenses.
You've got to put food on the table, clothes on your back and gas in your car-and have a little fun now and then. You also need to be prepared for emergencies as well.
Your mortgage specialist will help you make sure you have money left over to pay for the necessities of life, as well as some of your lifestyle choices.
Find out more at the RBC Mortgage Centre!
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