Budgeting
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What you’re approved for and what’s realistically affordable to buy are often two different things. Before purchasing a new property, we strongly encourage reviewing the cash outflows associated with the potential purchase to ensure they are appropriately offset by your cash inflows and remain within your financial comfort zone.
We are always happy to take a look at this with you! Below are some tips: |
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Two good processes to determine if you can afford a new property:
1) Review Current Situation vs New Situation:
Ask yourself:
Ask yourself:
- Are you comfortable with your current income compared to expenses?
- Is the new property going to cost you more than our current situation?
- If yes, are you comfortable with those additional costs?
You can setup a simple comparison like the below to review the totals and compare the differece. Are you comfortable with the difference?
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Costs to Rent
Rent: Tenant Insurance (if applicable): Parking: Utilities: Any Other Costs: Total: |
Property Ownership Costs
Mortgage Payments: Property Tax: Parking: Utilities: Condo/Maintenance Fee (if applicable): Insurance Expenses: Any Other Costs: Total: |
2) Put A Budget Together
The Financial Consumer Agency of Canada has an excellent free budgeting tool you can use to put together a more comprehensive budget.
https://itools-ioutils.fcac-acfc.gc.ca/BP-PB/budget-planner
https://itools-ioutils.fcac-acfc.gc.ca/BP-PB/budget-planner
Any significant upcoming changes to your cashflow on the horizon?
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Cash inflow wise: Is your income increasing or decreasing in the future? Examples:
Cash outflow wise: Are your outflows of cash changing in the future? Examples:
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