Putting together your first down payment is all about planning and prioritizing
With changes to mortgage regulations and the Bank of Canada’s qualifying rates, buying a first home might be tougher than expected, especially for those already carrying a large amount of debt. Currently, the total cost of a mortgage payment, property tax and utilities must be less than 40 per cent of a borrower’s gross income.
“The debt ratio makes a big difference to your purchasing power when buying a home,” said Calgary mortgage broker Monika Hägele. “Some people might work really hard, save up five per cent towards their desired home, and then that amount might not even be enough if they are carrying too much debt.”