Becoming a homeowner can be very exciting, but it’s not always the best decision for everyone. Before buying a home, such as a house or a condo, make sure you consider all costs.
According to Canada Mortgage and Housing Corporation (CMHC), your monthly housing costs should not be more than about 39% of your gross (before deductions) monthly income. These costs include your mortgage payments, property taxes and heat costs.
Your entire monthly debt load should not be more than 44% of your gross monthly income. This includes your mortgage payments and all your other debts, such as loan or credit card payments.