1. Find out how much you can borrow to buy a home
Ask your bank how much they will lend you for your new home. Or, ask your real estate agent to estimate the amount for you. The bank looks at:
- What you make each month and how much you can spend on mortgage payments.
- How much the house is worth and how much you can pay in cash (your down payment).
- What it will cost you to run your home – including taxes, heating, and insurance. If you are buying a condo, there will be a regular monthly charge called a maintenance fee. This pays for your share of common costs, such as snow clearing and building insurance.