What is mortgage affordability?

Mortgage affordability refers to how much you’re able to borrow, based on your current income, debt and living expenses. It’s essentially your purchasing power when buying a home. The higher your mortgage affordability, the more expensive a home you can afford to purchase.

The term ‘affordability’ is also used to describe overall housing affordability, which has more to do with the cost of living in a particular city. If the cost of housing relative to average income in a city is high, it will be seen as a less affordable place to live. The two terms are related, but it’s important to understand the difference.

How much can i afford?

How much you can afford to spend on a home in Canada is most determined by how much you can borrow from a mortgage provider. That is, unless you have enough cash to purchase a property outright, which is unlikely. Use the above mortgage affordability calculator above to figure out how much you can afford to borrow, based on your current situation.

What is mortgage affordability?

Mortgage affordability refers to how much you’re able to borrow, based on your current income, debt and living expenses. It’s essentially your purchasing power when buying a home. The higher your mortgage affordability, the more expensive a home you can afford to purchase.

The term ‘affordability’ is also used to describe overall housing affordability, which has more to do with the cost of living in a particular city. If the cost of housing relative to average income in a city is high, it will be seen as a less affordable place to live. The two terms are related, but it’s important to understand the difference.

How much can i afford?

How much you can afford to spend on a home in Canada is most determined by how much you can borrow from a mortgage provider. That is, unless you have enough cash to purchase a property outright, which is unlikely. Use the above mortgage affordability calculator above to figure out how much you can afford to borrow, based on your current situation.