How Much Can You Afford?

• 1). Calculate your monthly financial obligations, which you will need when discussing a mortgage with your chosen lender. The CMHC has a variety of tables to help you to calculate what you can afford.
  
  
• 2
  Obtain preapproval for a mortgage at an early stage.hipoteca americana image by caironbohemio from Fotolia.com
  
  Select a lender and obtain pre-approval for a mortgage. To do this, you will need identification, employment and other income details along with your bank details including any loans, debts and proof of any financial assets. The lender will check your finances, decide what you can afford and give you written confirmation of a fixed interest rate, which will remain current for a certain amount of time. You can then include this in your calculations when deciding on your budget.
  
  
• 3). Calculate how much you can afford to pay for a property by adding your tangible financial assets, such as savings and any profit made from a property you have sold. Tally your long-term debts, such as student tuition repayment, car loans. Compare your debt-to-income ratio with the amount of your pending mortgage for a realistic picture of your financial health, and what you can really afford. Remember you will also have to pay closing costs from this amount. Your Realtor can advise you on costs.
  
  

Begin Your Search

• 1
  Decide on an areaThumbtack in a map image by Nikolay Okhitin from Fotolia.com
  
  Decide on a specific area and the type of property you would like to live in. Think about features that are important to you, such as the number of bedrooms and bathrooms, a garden, proximity to schools and your workplace.
  
  
• 2). Find a local Realtor who is a member of CREA and the local real estate board. The Realtor website has a search facility so that you can check whether or not a particular Realtor is a member. You can also search by area on the Find a REALTOR website. This has an interactive map, which allows you to put in the province and city to produce a listing of Realtors who have been most referred by industry peers.
  
  
• 3). Consult the MLS with the help of your Realtor. The MLS covers all areas of Canada and allows you to enter your search criteria and view all suitable listed properties with photographs.
  
  
• 4
  Look out for "For Sale" signs in areas you like.House For Sale image by TMLP from Fotolia.com
  
  Drive around the areas you are interested in to see what's available in your price range, and begin to narrow your search. Think about your personal circumstances and how they will affect your choice. Some things you can't compromise on, such as being close to a school district if you have young kids or driving time to the nearest emergency room. If the property is in a perfect location for your family, you may decide to compromise on things, such as the number of bedrooms or the size of the garden.
  
  
• 5
  Keep records of the properties you view.Real Estate image by Kerry Adamo from Fotolia.com
  
  Begin viewing properties. Keep records of all the properties you visit to help you compare important features with real facts, rather than rely on your memory. The CMHC has a home-hunting worksheet on its website to help you keep records.