How Much Can I Afford? A Simple Breakdown (Gatineau 2025)

1) How Lenders Decide What You Can Afford in Canada

Most lenders look at:

• • First, income (salary, bonuses, self-employed income)

  • Next, debts (credit cards, car loans, lines of credit, student loans)

  • Then, your down payment (5%+ in Canada)

  • Finally, property costs (taxes, heating, condo fees if any)

They also check two ratios often called GDS (housing costs vs. income) and TDS (housing + all debts vs. income). Keeping both healthy gives you better approval odds and rates.

2) Build your monthly budget (5 numbers)

Use these five inputs to find your comfortable limit:

1. Net monthly income (after tax)

2. Current monthly debt payments (car, cards, loans)

3. Savings available for down payment

4. Expected property costs (taxes, heating, condo fees)

5. Buffer for life (emergency fund + maintenance)

For example, many buyers target 25–30% of gross income for housing payments as a comfort rule. However, even if a lender approves more, your comfort is always more important than the maximum.

3) Down payment & what it changes

• First, 5%–9.99% down: higher mortgage insurance premium, larger payment

• Next, 10%–14.99% down: lower premium than 5%

• Finally, 20%+ down: typically avoids default insurance and gives you flexibility

Moreover, if you’re a first-time buyer, you should also consider

• HBP (Home Buyers’ Plan) to draw from RRSPs

• Federal/municipal tax credits or rebates

• Employer RRSP matching (if available)

4) Don’t forget closing costs (Québec)

Plan ~3–4% of the purchase price for:

• Notary & title search

• Welcome tax (land transfer)

• Inspection & appraisal (if applicable)

• Home insurance, moving, utilities setup

Having this cash ready prevents last-minute stress.

5) A quick affordability sketch (hypothetical)

For example, let’s assume the following:

• Gross household income: $100,000/year (~$8,333/month)

• Other monthly debts: $300

• Down payment saved: $50,000

• Property taxes/heat/condo fees estimate: $500/month

Based on this, a conservative comfort target might be around $2,100–$2,500/month for the mortgage portion. Then, when you add $500 in property costs and $300 in debts, you can check if the number still feels comfortable.

Ultimately, a mortgage broker can translate that monthly payment into a realistic price range using current rates and the federal “stress test.”

As a next step, ask for two scenarios—Comfort Budget and Max Approval. This way, you can shop within comfort while keeping max as a ceiling for special homes.

6) Get pre-approved early (and avoid surprises)

A pre-approval confirms your rate hold and a realistic price range. It also strengthens your offer. Have ready:

• Recent pay stubs / T4 or tax returns

• Employment letter (or business financials if self-employed)

• Debt statements

• Proof of down payment & source of funds

Learn more: Pre-Approval vs. Pre-Qualification (What You Need) 

7) Match budget to neighbourhoods

Prices vary within Hull, Aylmer, Plateau, and across Ottawa. Therefore, ask your agent for a micro-market report with typical price, days on market, and what your budget buys this month. By doing this, you’ll avoid overstretching.

8) Offer strategy that protects your budget

• First, set a hard cap before you tour (and stick to it).

• Next, in multiple offers, improve terms (deposit, timing) instead of blowing past your comfort price.

• Finally, keep a home inspection where possible, or do a pre-offer walkthrough to spot risks.

FAQs

How much should I put down?
If 20% is realistic without draining savings, great. If not, 5–10% still works—just plan for the insurance premium and keep a healthy emergency fund.

What monthly payment is “safe”?
Many buyers aim for 25–30% of gross income on housing. Your comfort level matters more than a bank’s maximum.

Should I buy now or wait?
Run two scenarios with your broker: today’s rates vs. a modest rate drop. If waiting won’t materially change your comfort payment, consider moving ahead when you find the right home.

Next steps (2 minutes)

• • First, get a comfort + max budget from a local mortgage pro.

  • Then, see real homes that fit your numbers in your preferred areas.

  • Finally, stay within your comfort payment—not the maximum approval.

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