Calgary Mortgage Information

When it comes to Mortgages there are lot of questions to answer! But, there is one question that is the most important and is the first on the list…

How Much Can You Afford?

Why is it so important to know how much you can afford to spend on a home?
Two reasons;
  1. First, you don’t want to buy a property and then find out, only after you’ve moved in, that you can’t financially maintain it. That would mean having to resell it under stressful conditions.
  2. Second, you don’t want to settle for a property that’s less than ideal, when you really could have afforded the “dream home” you’ve always wanted.
So how do you figure out how much you can afford to pay for your next home?

The first step is to talk to us. We will help you gain a clearer understanding of how much your current home will likely sell for in today’s market. That amount, together with other financial resources you might have (such as savings), will determine your down payment.

The next thing you’ll need to figure out is your mortgage. We can help you find a lender* who will take a variety of factors into account – income, credit rating, debts, expected down payment, etc. – to calculate the maximum amount of mortgage for which you qualify.

Say, through the proceeds of the sale of your home combined with your savings, your expected down payment is $90,000. If the lender authorizes a mortgage of $270,000, then you can afford a $360,000 home. Of course, that doesn’t mean you’ll need to spend that much. In fact, a home that meets your needs in terms of property type, features, and neighbourhood, may in fact cost you less.

Feel free to ask us any questions at 403-604-0300.

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