Buying a Home

Down payments, mortgages, FHSA, the stress test.

Module 1 of 11

Can I actually afford a home?

What you'll learn

GDS and TDS ratios
5% rule for total housing cost vs take-home
Down payment + closing + furniture + moving
Buying vs renting break-even

The Canadian number

39% / 44%

CMHC max GDS / TDS

Source: CMHC

The story

Banks will lend you up to 39% GDS (mortgage + tax + heat / income) and 44% TDS (all debts / income). At those limits, you're house-poor. PFC consensus: aim for under 30% GDS so you can actually still afford to live, save, and travel.

This week's action

Use a mortgage affordability calculator (e.g. MyMoneyMap's own home affordability tool, Ratehub, or your bank's site) with your real numbers BEFORE you fall in love with a listing.