How much can you afford?
Calculate how much you can afford to spend on housing each month without putting your financial health at risk.
These two simple rules will show you what you can afford to pay for a home. Understanding these rules can also help you when it’s time to get approved for a mortgage.
Your monthly housing costs should be no more than 32% of your average gross monthly income. This percentage is known as your gross debt-to- income or gross debt service (GDS) ratio.
Housing costs include: your monthly mortgage payment (principal and interest), property taxes, heating expenses.
Your monthly debt load should be no more than 40 per cent of your average gross monthly income. This percentage is known as your total debtto-income or total debt service (TDS) ratio.
Your monthly debt load includes: housing costs, car loans or leases, credit card and line of credit payments.
Planning renovations or improvements but not sure where to start? Get an EnerGuide home evaluation and take the guesswork out of which improvements can save you most on energy bills. This can be your first step towards a more energy efficient-home. An energy-efficient home is: Less expensive to operate; More comfortable to live in; More environmentally friendly.
It is important to understand that a house operates as a system. Besides occupant activities and the external environment (e.g. temperature, wind, rain, air quality and noise) the elements of a house such as insulation levels, airtightness, window and door types, ventilation rates, heating and cooling systems all affect each other and this combination affects the overall house performance. For example, even if you are investing in new heating and cooling equipment or new windows and doors, you cannot optimize the energy performance of your house if you are not keeping heat in during the winter and out during summer. This simple home improvement sometimes pays for itself in less than a year and continues to pay back for the life of the house.