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What's The First Step When You Are Looking To Buy A Home?

Figure Out Home Much You Can Afford

The first thing home buyers should – need – to do when thinking of purchasing a home is to figure out how much house they can afford.  The first step in the process is to get a pre-approval (this is different from a pre-qualification – see the FAQ page for further information).

Home buyers will need to talk a lender, whether it be a bank or a trust company.

Lenders will consider a number of things when deciding upon the level of the loan:

  1. Banks, trust companies and other institutional lenders will place a cap of approximately 32% of your (household) gross monthly income to be spent on housing costs (mortgage, property taxes, heating, and 50% of condo fees if applicable).  This ratio of income to housing costs is referred to as the Gross Debt Service (GDS).
  2. In addition to housing costs outlined above, the home buyer may also have car loans and credit card payments.  These will all be added together to arrive at the home buyer’s entire monthly debt.  Lenders will place another cap of approximately 40% for the home buyer’s entire monthly debt to your gross monthly income.  This is referred to as the Total Debt Service (TDS).
  3. In addition to these ratios, lenders will also look at the home buyer’s credit history (they will likely run a credit check), your job stability and income, and down payment to decide how much they will loan the home buyer as a mortgage.

If you don’t have a lender you can contact me and I will connect you with a superb lender.

If you were to buy a home now, what would you buy?

Search Thousands Of Homes In The GTA

I am here to help you locate the home that is perfect for you. Fill in the form below and get ready for the journey that will lead you to the door of your new home.

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Clicking the submit button will allow me to send you relevant real estate information in your quest to find a new home.  Any and all information will be kept strictly confidential.

BUYER REGISTRY SERVICE

INCREASE YOUR HOME SEARCH EFFICIENCY

Fill in the form below to enrol in the free, no obligation Buyer Registry service and get on the radar of home sellers.  This will increase the efficiency of your search.

All inquires come through me, and the only information that will be posted will be your home search criteria.

Your Name*

Your Email*

Phone Number*

Type of Property

Other Type of Property

Area of Interest: Check all areas that is of interest to you.

Other Area of Interest

Price Range:

to

Minimum Number of Bedrooms:

Minimum Number of Bathrooms:

How soon are you looking to buy a house:

Are you currently working with a Real Estate Agent:

Additional Comments/Questions