Can You Afford That Home? A Step-by-Step Affordability Check

Buying a home is exciting—but it can also feel overwhelming, especially in today’s market. With rising prices, changing interest rates, and new rules around mortgages, many Canadians are asking the big question:

“Can I really afford this?”

At Swivel Mortgage Group, we want to help you answer that with confidence. Let’s walk through a simple, step-by-step affordability check to see what home price truly fits your budget—not just what the bank says you qualify for.

Step 1: ✅ Know Your Monthly Budget

Before we talk about mortgage approval, let’s start with your real-life budget.

Ask yourself:

• What’s your total monthly income (after tax)?

• What are your current monthly expenses (rent, food, subscriptions, car, childcare, etc.)?

• Are you putting money aside for savings, retirement, or vacations?

  
  

💡 Tip: A good rule of thumb is to keep housing costs under 35% of your gross monthly income. But that’s just a guideline—your personal comfort level matters more.

Step 2: 📊 Get a Pre-Approval (But Don’t Stop There)

A mortgage pre-approval will give you a general idea of how much a lender is willing to loan you. But it’s important to remember:

Use this number as a starting point, not your budget limit.

Step 3: 💰 Factor in the Real Costs of Homeownership

Owning a home comes with more than just a mortgage payment. Make sure you account for:

• Property taxes

• Utilities

• Home insurance

• Maintenance & repairs

• Condo fees (if applicable)

Example:If your mortgage payment is $2,500/month, you could easily spend another $500–$1,000/month on these extras. That’s a big difference!

Step 4: 💸 Don’t Forget the Upfront Costs

Affordability isn’t just about monthly payments. You’ll need to budget for:

• Down payment (minimum 5% in most cases)

• Closing costs (usually 1.5%–4% of the purchase price)

• Home inspection

• Moving costs

Pro tip: Use our Mortgage Calculator to estimate your monthly payments and upfront costs based on your down payment and purchase price.

Step 5: 📉 Stress-Test Your Future

Today’s interest rates could rise again—or drop. Ask yourself:

• Could I still afford my payments if rates went up 1–2%?

• What happens if my income drops or I go on maternity leave?

• Am I building a buffer for unexpected repairs?

A solid plan today means fewer surprises tomorrow.

Step 6: 👩‍💼 Talk to a Mortgage Broker (Like Us!)

This is where we come in. We look at your full financial picture and help you:

• Determine a comfortable budget

• Compare lender options

• Find first-time buyer incentives

• Understand what makes the most sense for you, not just the bank

The Bottom Line

Home affordability isn't about how much you qualify for—it's about what fits your life.

At Swivel, we make it easy to run the numbers, explore your options, and make smart choices that set you up for long-term success.

📞 Ready to check your affordability the smart way?

Let’s chat: 647-794-7676 or start your journey here: Apply Online