What can I afford?

You will need to estimate your income, expenses, investments, savings and debt to determine what would be an appropriate mortgage for you. We have an interactive calculator that can give you a basic idea and a starting point to get going. See our OCG mortgage affordability calculator.

Some examples of these guidelines include:

  • Total monthly mortgage payments should not exceed 27% - 32% of your monthly income before taxes.
  • Total monthly payments for the mortgage and other loans and credit cards should not exceed 37% - 40% of your monthly income before taxes.

Other Home Ownership Expenses

It will be important to calculate all other expenses associated with a home purchase, as well as what you can afford for a down payment and mortgage payments. Monthly expenses can include: utility expenses (hydro, phone, cable, internet), entertainment, taxes, credit card payments, condo fees, and any other recurring expenses.

You may want to check your monthly statements and credit card or bank statements (for any automatic monthly payments), to give yourself as accurate a picture as possible.

For further information, we suggest contacting your local financial institution or an experienced mortgage broker. If you would like a referral to a lender or mortgage broker, we would be happy to help you find one that will assist you.

Additional Costs

Beyond the actual purchase price, there are other costs associated with buying a home. These are commonly referred to as closing costs and usually are about 2% of the total cost of your home.

Based on a $200,000 condominium in Ottawa - some estimated amounts are:

  • Land Transfer Tax $1,725
  • Legal Fees $750 - $1,500 plus disbursements
  • Home insurance approx. $450/ year (unless included in condo fee)
  • Interest Adjustment (varies)
  • Property Tax Adjustment (varies)

You will also need to allocate costs for moving, storage and decorating in your "new home" budget.