A mortgage estimate is a useful starting point. Your own spending plan helps you decide whether that payment leaves enough room for the rest of your life.
1. Work from take-home income
Write down the money your household actually receives and the spending you want to preserve. This is your personal budget exercise, not a substitute for lender qualification.
2. Use three planning scenarios
Compare a comfortable purchase, a more expensive option and a scenario with an unexpected household expense. Keep your assumptions visible rather than treating one estimate as a promise.
3. Choose what you want to keep in reserve
Decide what you want left after the purchase for moving, repairs and emergencies. Bring that target to the mortgage conversation before committing all savings to the down payment.
Questions to bring to our conversation
- What would make this payment uncomfortable?
- How much savings do I want after closing?
- What changes if one income temporarily falls?
Further reading: FCAC: Buying a home. General information; lender requirements and individual circumstances vary.