Can You Afford a Single-Family Home?

Can You Afford a Single-Family Home?

If you're in the market for a single-family home, you might be wondering how much house you can actually afford. After all, unlike an apartment or condo, you'll be responsible for maintaining both the interior and exterior of the property, as well as any yard space. Let's take a closer look at what factors you should consider when trying to determine how much house you can afford.

Determine Your Budget

The first step in figuring out how much house you can afford is to determine your budget. Start by looking at your monthly income and expenses, including things like your mortgage or rent payment, car payment, student loan payments, credit card bills, and any other monthly expenses. Once you have a clear understanding of your monthly budget, you can start to look at houses in your price range.

Get Pre-Approved for a Loan

Next, you'll need to get pre-approved for a loan. This will give you a better idea of how much money you can borrow from the bank and will help to narrow down your search. When getting pre-approved for a loan, be sure to shop around with different lenders to find the best interest rate and terms. For an idea of what you may expect your pre-approval to be, try our Mortgage Calculator!

Consider Maintenance and Upkeep Costs

Finally, don't forget to factor in the costs of maintaining and repairing your new home. Things like painting the exterior, fixing leaky pipes, or mowing the lawn are all costs that will fall on your shoulders as a homeowner. While these costs may seem small at first glance, they can quickly add up over time. So be sure to factor them into your budget when trying to determine how much house you can afford.

Purchasing a single-family home is a big financial decision. Before making the jump from renting to owning, be sure to consider all of the costs associated with buying and maintaining a home. By taking the time to do your research upfront, you can avoid any unpleasant surprises down the road.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.