How to Determine Your Home Buying Budget

Know your limit, stay within it!

This classic saying can be applied to a multitude of things, one of them being purchasing a home in Calgary, Alberta. Know your budget for a mortgage, and stay within it. This is crucial to ensure you do not get in over your head financially. Here are some elements of the home buying process to take into consideration as you endeavor to purchase a property:

  • Personal Finances: Begin by assessing your current financial situation. Calculate your monthly income after taxes and deduct your existing financial obligations, such as car payments, student loans, credit card debt, groceries, utilities, and more. The amount remaining is what you can allocate towards a mortgage payment.
  • Consider Down Payment and Closing Costs: Determine how much you can afford to put down as a down payment. The ideal is 20% on a 15 year mortgage, but traditionally people are putting less down on a 30 year mortgage. Remember to factor in closing costs, which your real estate professional can advise you on.
  • Beware of Debt: Remember that if you carry a ton of debt already, your likelihood of getting a mortgage at a good rate—or a mortgage, period—falls. Ensuring you are in a solid financial place with little debt is imperative.
  • Get Pre-Approved: Once you have a clear understanding of your finances, consider getting pre-approved for a mortgage. This will give you a more accurate picture of how much you can borrow based on your financial situation, and it will sweeten any deal you bring to a seller by making you a safer bet!
  • Consult with a Financial Advisor: If you're unsure about your budget or need assistance in assessing your finances, consider consulting with a financial advisor. They can provide personalized advice based on your unique situation, and are experts!

Are you ready to make your move? Contact Ken Richter directly today at 403-630-6363 or email

Posted by Ken Richter on


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