The first question you’re bound to ask is, “How much home can I afford?” That depends on a number of factors:
Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting?
Your preferred type of home. Detached? Semi? Duplex? High-rise? Link? Townhouse? New or Resale? There are a variety of home styles you will want to explore.
Your income. After all, it’s not just the mortgage you have to take into account. There are property taxes, utilities, and in some cases condo or strata fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income.
Market conditions. Is it a buyer’s, sellers or balanced market?
There are also additional costs to keep in mind. It’s a good idea to work out exactly what you want and what you can afford before you begin the search. Be specific! After all, you don’t want to suddenly come to the realization that your dream house has come with a nightmare of bills and expenses. Stick to looking at houses in your price range. The more you’ve thought it out, the better your sales representative can meet your needs.